Terra Luna Classic Community Pool Reaches Record 5 Billion LUNC Balance Amid Concerns Over Development Activity
The Terra Luna Classic community pool has achieved a significant milestone with its balance hitting an all-time high of 5 billion LUNC, along with 11,803,526 USTC, as reported by StakeBin. While this milestone signals ample funds available for developers and contributors, there’s growing apprehension due to a notable decline in development activity and total value locked (TVL).
Despite the substantial balance in the community pool, there’s a visible underutilization of available funds, posing a risk of stagnation and setback in the community’s revival efforts. Data from DefiLlama highlights a concerning drop in development activity, with total commits decreasing from 760 in March 2023 to 371 in March 2024, and currently standing at only 79 for this month. This decline is attributed to various factors, including a scarcity of KYC-compliant developers and challenges associated with the pay-per-job (PPJ) proposal.
Additionally, the TVL on the chain has witnessed a significant decrease from $7.51 million in December 2023 to $2.27 million at present. Despite ongoing efforts to enhance utility and attract more projects, the community struggles to entice developers, as evidenced by the low contributions from projects like Astroport Classic, Terraswap, Eris Protocol, and Soluna, which have experienced declines of 5-8% in the last 24 hours.
Furthermore, the proposal to establish a dedicated team for the Terra Classic chain has been rejected by the community, with validators expressing concerns over centralization risks and conflicts with the PPJ model.
Amidst these challenges, the prices of LUNC and USTC have witnessed a 7% decline in the last 24 hours, with trading volumes also experiencing a notable decrease. This indicates a lack of confidence among traders, reflecting the broader concerns surrounding the Terra Luna Classic ecosystem’s current state and future prospects.