The Terra Classic network has successfully completed its crucial V1.1.0 upgrade, a strategic update designed to address key technical hurdles. This major release marks a significant milestone for the blockchain, being the first major version to utilize the upgraded governance proposal mechanism for implementation.
This upgrade is considered essential for the network's functionality and future development. Lasting approximately seven hours, the process successfully resolved the core technical issues that had previously prevented major exchanges from contributing to the LUNC token burn mechanism. The community now awaits decisions from these external platforms.
Key Features of the V1.1.0 Upgrade
The primary objective of the Terra Classic V1.1.0 upgrade was to modify the network's tax mechanism to meet specific conditions set forth by major trading platforms. The upgrade was scheduled for block height 11,734,000.
A central feature of this update is the implementation of a burn tax split function. Crucially, the new code exempts designated external exchange wallets from the on-chain LUNC tax. Furthermore, the upgrade permanently removes the ability to re-mint burned LUNC tokens, a change that directly addresses previous concerns.
For the network to operate smoothly, all full-node operators and validators are required to install and run the new software version, v1.1.0.
Community and Developer Response
The upgrade process was met with anticipation from the Terra Classic community. Network updates can often cause temporary instability, and this event was no exception. However, developers confirmed the successful execution of the upgrade after approximately seven hours.
Prominent community members and developers shared positive updates, announcing that the network was running again and progress was moving forward. The successful deployment was later confirmed by senior developers involved in the project, who received applause for their efforts during the chain-upgrade experience.
The proposal for this upgrade was initially put forward in mid-February. It was emphasized that migrating to V1.1.0 would incorporate governance-approved features critical for the blockchain's evolution.
Implications for Exchange-Led Token Burns
With the technical barriers now removed, the focus shifts to the response from major exchanges. The community hopes that the changes will prompt the resumption of voluntary LUNC burn contributions, which were previously paused.
Recall that a leading exchange halted its voluntary LUNC burn program late last year. This decision coincided with the community passing a proposal that involved minting burned LUNC, a move that conflicted with the exchange's burn contribution framework. The exchange outlined specific conditions for a potential resumption, including the creation of a separate, tax-exempt burn wallet and the permanent elimination of the re-minting function.
The recent upgrade has now successfully addressed these exact requirements. While an official announcement is pending, the community anticipates a positive decision. It is widely noted that any resumed burn program may operate at a reduced volume compared to previous efforts. For the latest updates on tokenomics and burn mechanisms, you can explore more strategies here.
The Path Forward for Terra Classic
The successful deployment of V1.1.0 represents more than just a technical patch; it signifies the community's ability to coordinate and execute complex governance decisions. This upgrade strengthens the network's infrastructure and aligns its economic mechanisms with the goals of its stakeholders.
The community's proactive approach in meeting external conditions demonstrates a commitment to fostering a healthy ecosystem and encouraging positive external participation. The coming weeks will be critical in observing how these technical changes translate into tangible economic activity and renewed confidence in the project.
Frequently Asked Questions
What was the main goal of the Terra Classic V1.1.0 upgrade?
The primary goal was to modify the network's on-chain tax system. It implemented a burn tax split and created exemptions for specific wallets, directly addressing the requirements needed for major exchanges to potentially resume their LUNC token burn contributions.
How long did the network upgrade take?
The entire upgrade process for the Terra Classic blockchain lasted approximately seven hours. During this period, users may have experienced some network instability, which is common during such significant updates.
Do validators need to do anything after this upgrade?
Yes, for the network to function correctly, all validators and full-node operators must upgrade their software to the new version, v1.1.0. Running an outdated version will prevent them from participating correctly in the network.
Will LUNC tokens be re-minted after being burned?
No, a key change with the V1.1.0 upgrade is that it permanently removes the capability to re-mint any LUNC tokens that have been sent to the burn address. This creates a truly deflationary mechanism.
What is the significance of creating a separate burn wallet?
The creation of a separate, tax-exempt burn wallet for exchanges was a specific condition set by them. It allows them to contribute tokens to the burn mechanism without incurring the standard on-chain transaction tax, making the process efficient and predictable.
How can I stay updated on LUNC burn activities?
The best way to stay informed is by monitoring official announcements from the Terra Classic community and major trading platforms. Community forums and official social media channels provide regular updates on network status and burn metrics. For tracking market trends, you can view real-time tools here.