Terra Luna Classic Community Passes Vote Threshold to Ban “Spam” Proposals

Key highlights:

• The Terra Classic network has been flooded with meaningless proposals lately, clogging up the system like an overloaded trash compactor.
• The community voted overwhelmingly to raise the minimum deposit from a million to five million LUNC tokens.
• Filtering out all the noise will let validators focus their energy on rebuilding trust in the ecosystem through meaningful development and governance.

The Terra Luna Classic (LUNC) community has taken a major step forward by passing a proposal to increase the minimum deposit amount required for new proposals. This move aims to cut down on the flood of “spam” proposals that have overwhelmed the network in recent months.

Proposal 11780 called for raising the minimum LUNC deposit from 1 million to 5 million tokens. It passed in a landslide, receiving over 94% of votes in favor. The higher deposit amount will make it much more expensive for bad actors to spam meaningless proposals just to clog up Terra’s governance system.

The problem of spam overload

In the wake of LUNC’s price collapse earlier this year, the Terra ecosystem was thrown into disarray. With the token’s value drastically reduced, it became very cheap for anyone to submit a proposal. This led to a deluge of proposals, many of which were redundant, ill-conceived, or even outright scams.

The Terra team and validators were overwhelmed trying to sort through and evaluate this firehose of proposals. It bogged down the governance process and made it difficult to focus on substantive and urgent matters.

Taking out the trash

That’s why Proposal 11780 was put forward – to filter out the noise and raise the barrier of entry for submitting proposals. Its passage with near universal support from validators shows that the community is aligned on the need to clean things up.

One validator put it bluntly: “1 million LUNC is no longer sufficient to discourage these unwanted proposals.” By quintupling the minimum deposit amount, the Terra community aims to ditch the garbage proposals and focus on constructive ideas.

Some in the community argued against the change, saying it would limit accessibility to Terra’s governance. But the lopsided vote makes clear that the barrage of bad proposals had become too much to bear. Sometimes you have to increase moderation in order to improve the signal-to-noise ratio.

 What’s next for Terra governance

With this pass, Terra can start clearing out its proposal backlog and shifting attention to more pressing matters. Some analysts say the community should focus on reigniting development and rebuilding trust in the Terra ecosystem.

Others argue more urgent action is needed to relaunch LUNA or restore UST’s peg. No matter the path forward, Terra now has a better mechanism to filter out distracting proposals and focus on big ideas that can really move the needle.

LUNA sits at $0.3909 currently but may reach $0.904404 in 2024 if bullish forecasts prove accurate. By reducing low-effort submissions, the proposal’s approval could help bolster confidence in both projects’ governance over the long haul.

The answer to the question on the minds of long-term Luna investors is in our article. Will Luna Recover?