Terra Luna Classic Community Pushes for 10x Increase in Gas Fees to Combat Spam Attacks

The Terra Luna Classic (LUNC) community is at a crucial juncture as it votes on a significant proposal to increase gas fees by tenfold. This initiative, labeled Proposal 12095, is designed to tackle the persistent issue of spam attacks on the blockchain network by making them economically unfeasible. The proposal has garnered substantial support from the community, with over 76% of voters and 17 out of 30 validators backing the measure.

The Rationale Behind the Proposal

Currently, the gas fees on the Terra Luna Classic network are quite low, at approximately 3.74 LUNC per transaction. This low cost has made it relatively easy and affordable for attackers to flood the network with spam transactions, potentially disrupting normal operations and degrading network performance. By proposing a tenfold increase in gas fees, the community aims to significantly raise the financial barrier for such malicious activities, thereby enhancing the overall security and stability of the blockchain.

The proposal suggests that increasing gas fees will not only deter spam attacks but also benefit the community by redistributing the additional revenue. Specifically, 50% of the increased fees would go to the community pool, while the remaining 50% would be allocated to staking rewards, thus providing further incentives for network validators and stakeholders.

Community Response and Voting Outcome

The proposal has sparked a vigorous debate within the community. Supporters argue that the increase is necessary to protect the network from attacks that exploit low transaction costs. They believe that the added security will ultimately benefit all users by maintaining the integrity and reliability of the blockchain.

However, there are notable concerns regarding the potential impact on transaction costs and the broader ecosystem. Critics worry that the higher gas fees might discourage the use of decentralized applications (dApps) and other services on the Terra Luna Classic network, potentially stifling innovation and user engagement. TerraCVita, a prominent voice in the community, has expressed reservations, stating that while the proposal addresses security concerns, it may inadvertently create additional challenges for ecosystem participants.

Despite these concerns, the proposal appears to be moving towards approval, with a significant majority of the community voting in favor. This strong support reflects a collective prioritization of network security over the potential drawbacks of higher transaction costs.

Implications for LUNC Price and Market Dynamics

The proposal comes at a time when the Terra Luna Classic token (LUNC) has experienced a notable increase in market activity. Following the announcement of the proposal, LUNC’s price rose by 5%, with the token trading at $0.0001019. This uptick is part of a broader market recovery, with increased trading volume suggesting heightened interest from investors and traders.

Futures traders have also shown optimism, with open interest in LUNC futures contracts on exchanges like Binance and Bybit increasing by over 6% within a few hours. This bullish sentiment indicates that the market views the proposal as a positive step towards securing the network and enhancing the token’s long-term value proposition.

Broader Security Measures and Governance Proposals

In addition to the 10x gas fee increase, the Terra Luna Classic community is exploring other measures to bolster network security. Genuine Labs, for instance, has proposed reducing the maximum block size from 5MB to 2MB to counter peer-to-peer storm attacks. This complementary proposal highlights the community’s proactive approach to addressing various security threats.

However, not all governance proposals have received the same level of support. Proposal 12093, which aimed to establish a new Terra Classic Team following the dissolution of the Layer-1 Joint Task Force, faced significant opposition. Critics argued that the proposal resembled past governance structures that were deemed ineffective in terms of management and transparency. The mixed reception to this governance proposal underscores the complexities and challenges of navigating community consensus in a decentralized environment.

Conclusion

The Terra Luna Classic community’s push to increase gas fees by 10x is a decisive move to enhance network security and deter spam attacks. While the proposal has received strong support, it also raises important questions about the balance between security and accessibility. As the community continues to vote and deliberate on these critical issues, the outcome will likely shape the future trajectory of the Terra Luna Classic blockchain and its ecosystem.

In the meantime, the market’s positive response to the proposal reflects a cautious optimism that the increased security measures will strengthen the network and support the long-term value of LUNC. As with any significant change in a blockchain network, ongoing dialogue and careful consideration of all stakeholder perspectives will be essential in achieving a sustainable and secure path forward.