Terra Luna Classic (LUNC) Developers Propose Adjustments to Staking Rewards Distribution

With staking being the pillar of any healthy DeFi ecosystem, the developers of Terra Luna Classic (LUNC) have announced a long-awaited update that will massively boost staking rewards

Terra Luna Classic (LUNC) developers have announced an upcoming update that will significantly increase staking rewards within the ecosystem.

The development was announced by a leading LUNC developer, who revealed that the Oracle split logic has been completed and is currently being tested on the testnet.

“Oracle Split Logic Finished.

Testnet ongoing.

Commonwealth is out.”

The Oracle split is included in proposals 12098 and 12114, which are part of Release v3.1.0. It will divert community pool rewards to the Oracle Pool, reducing its depletion rate—the rewards are generated through the tax split.

Currently, Terra Luna Classic has a 0.5% burn rate, out of which 80% is allocated to burns, while the remaining 20% is distributed to rewards and the Community Pool. The new proposal aims to split this 20% between the Community Pool and the Oracle Pool.

However, the proposal has faced some criticism, with a key concern being its implication on block rewards for LUNC validators. Under the new mechanism, block rewards will be generated solely from gas fees, and the annual percentage rate is also set to decrease by 0.5%. Some experts have warned that passing the proposal could lead to an immediate price decline.

Terra Luna Classic proposes adjustments to the LUNC burn tax distribution, possibly leading to further price declines.

The plan allocates 10% of the tax to the Oracle pool, enhancing staking. Developers target completion by mid-July, foreseeing initial price volatility. Seeking… pic.twitter.com/vtowCJCvKk

Despite this, proponents argue that the adjustment will ultimately benefit the ecosystem, particularly by enhancing staking.

LUNC staking has seen massive growth in recent months. As reported by Crypto News Flash two weeks ago, the staked LUNC hit 1 trillion amid an aggressive increase since the beginning of June.

The growth continues, with the community staking nearly 250 million LUNC in the past 24 hours and over nine billion tokens in the past week. In total, staked LUNC now comprises 15.09% of the total tokens, marginally lower than the all-time record set last October.

On the trading front, LUNC has seen a slight decrease over the past 24 hours, trading at $0.00007117 amid a 21% decline in trading volume.

According to one analysis, the token has been trading within a falling channel and is changing hands below its 50-day and 200-day simple moving averages (SMAs). If it finds strong support at the current level, the analyst anticipates LUNC could rally 67% and hit $0.00017. However, if it fails to hold up, the next support lies further down at $0.00005646.

(Image courtesy of Mirko Dee).

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