The developer, highlighting perceived risks, believes that the chain is recording general improvements.
Rex Harrison, AKA Rexzy, a senior member of TerraCVita, an independent Terra Classic development group, has highlighted seven risks facing blockchain.
The developer did this in a Twitter thread today, asserting that the network is witnessing general improvements.
My top 7 #LUNC risks.
Generally we are improving.
We continue to develop decentralisation and security practices, oust none team players in LUNC teams.
Be kind to builders and investors and not tolerate scammers or let them rebrand.
L1 should code, not be political.
— Rexyz (@RexYellerBelly) February 9, 2023
According to Rexzy, the risks include:
- Centralization risks from concentrated voting power
- Security risks, as some validators have their keys in the custody of Allnodes, a node-hosting service
- Broken technology
- Instability in governance decisions, citing the frequently changing tax parameter on the blockchain, which could potentially discourage business and investors
- poorly-informed and toxic leadership
- Poor image in the investor community
- Lack of accessibility
Rexzy asserts that the centralization, security, technology, and accessibility risks are reducing. However, he says that the image risk remains high while leadership concerns are growing.
It is worth noting that in recent weeks, concerns over the operations of Allnodes have dominated the discourse in the Terra Classic community. It comes as Notional Labs founder Jacob Gadikian raised concerns over the high cumulative voting power of the node-hosting service provider, which he placed at chain-breaking levels of 40%. In addition, he also alerted the community of Allnodes’ practice of holding on to the seed phrases of validators using its service. The developer urges users to stake their Terra Luna Classic (LUNC) elsewhere.
As reported yesterday, Allnodes released a transparency report to address the community’s concerns. Before that, it launched a non-custodial node management service for Tendermint chains to give validators control over their information. Notably, while showing Allnodes had a cumulative voting power of up to 30% on the Terra Classic chain, the transparency report revealed that it never attained chain-breaking levels above 33%.
It is worth noting that the Terra Classic chain, once perceived as a decentralized finance (DeFi) revolution and a serious Ethereum competitor, collapsed in May last year following the de-pegging of its dollar stablecoin.
The collapse wiped out billions in investor funds and precipitated the collapse of firms with significant LUNC exposure. In the aftermath, while Terra Classic developers Terraform Labs have opted to start afresh with a new blockchain, the community has refused to give up on the possibility of a revival.