Terra Classic Community Rejects 10X Increase in Gas Fees

The community behind Terra Classic (LUNC) has rejected a proposal aimed at increasing the network’s gas fees by a whopping 10x. 

For context, proposal 12095, dubbed “10X Gas Fees,” was launched on April 17 to raise Terra Classic network’s gas fees by 10x. The rationale behind the proposal was to deter spam attacks on the Terra Classic network. 

Mixed Reactions Trail Controversial Proposal 

Interestingly, the proposal received enormous support from community members shortly after its introduction, with several users initially voting in favor of increasing on-chain fees. 

However, things did not turn out as many expected after some top Terra Classic community members opposed raising the network’s gas fees.

Prominent Terra Classic validator Allnodes cast a dissenting vote in proposal 12095, expressing concern that its implementation would negatively affect restake operation costs. 

Following the concerns raised by Allnodes and other prominent Terra Classic community members, multiple validators also voted against the potential increase in the network’s gas fees.  

Consequently, proposal 12095 was rejected after receiving 44.83% “Yes” votes, 6.32% “No,” 35.31% “No with Veto,” and 13.54% “Abstain.” The result of the proposal was recently shared by a community-driven X account, “LUNC Army.” 

Reason Why Terra Classic Community Voted Against Proposal 

Meanwhile, another Terra Classic community-driven X account Marketing LUNC provided more insight into why the project’s enthusiasts rejected the proposal. 

According to the X post, the account emphasized that increasing the Terra Classic network’s gas fees by 10X is not the solution to combat potential spam attacks. 

They noted that the community rejected the proposal due to its potential negative impact on the overall ecosystem’s growth, support for decentralized applications (dApps), and transaction execution costs. 

Terra Classic Community ,

We vote NO on proposal 12095 to increase gas fees x 10 to deter future attacks, this risks harming our ecosystem's growth, diminishing support for dApps, and driving up costs for end-users Excessively raising gas fees is not the solution.#LUNC $LUNC pic.twitter.com/leODQDVLyM

— Terra Classic Community (@marketinglunc) April 22, 2024

It is noteworthy that Terra Classic users pay a minimum gas fee of 3.74 LUNC ($0.000385) to execute transactions on the network. If the proposal had passed, Terra Classic gas fees would have spiked to 37.4 LUNC ($0.00385). 

Notably, all Terra Classic transaction fees are split into two equal parts. While 50% of Terra Classic fees are allocated to staking rewards, the other 50% are allotted to the community pool. 

Meanwhile, the Terra Classic community is still focused on the ongoing revival campaign that could potentially bolster the price of LUNC to $1. As reported earlier, Binance recently reignited hope in achieving this dream after it incinerated 4.17 billion LUNC on April 1, bringing its total burns to 57.66 billion.