Terra Rebels’ Core developer Edward Kim suggests the opening of crucial IBC channels.
The reopening of channels will increase the utility of Terra Classic and the price of LUNC.
The Terra Classic's Inter Blockchain Communication (IBC) channels.
The proposal seeks to reactivate IBCs for Osmosis, Crescent, and Juno which were shut down during the Terra-LUNA crisis in May 2022.
The Terra Classic community seeks to improve utility by reintroducing projects to the chain. It will also increase the LUNC burn rate and assist the LUNC price in recovering from the FTX crisis.
Terra Classic Core Dev to Reopen IBC Channels
Terra Rebels' core developer proposed re-enabling IBCs between Terra Classic and three channels for Cosmos-based chains Osmosis, Crescent, and Juno. During the Terra-LUNA crisis, the channels were disabled.
Terra Rebels, Osmosis, and Notional Labs are collaborating on an L1/L2 chain upgrade to enable IBCs once again. The IBC channels will be isolated from the v23 software upgrade. Because of the constant changes in the Cosmos ecosystem and the testing required to achieve parity with the Cosmos ecosystem, Edward Kim believes it is necessary.
If the proposal is approved by the community, developers will reopen the IBC channels at block 10,542,500 on December 5, as planned. As a result, trapped assets can flow through the channels, with the majority of assets trapped on Osmosis. However, it will not go into effect until the v23 network upgrade is completed.
Terra Classic community members have already overwhelmingly approved the proposal. The governance vote will confirm the channels' opening. This will help increase the LUNC burn rate by restoring utility to the chain. In fact, it may also aid in the recovery of the LUNC price.
LUNC Price Drops During the FTX Debacle
Terra Classic's price fell as a result of FTX's demise. The cryptocurrency market continues to fall, with Bitcoin and Ethereum prices reaching a two-year low.
The price of LUNC is currently trading at $0.000149, down nearly 3% in the last 24 hours and 14% in the last week. Meanwhile, the community remains optimistic about a significant increase in LUNC prices in December.
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