Deep Dive
1. v3.5.0 Upgrade (15 August 2025)
Overview: The upgrade focuses on reactivating the Market Module, a core mechanism for balancing LUNC and USTC on-chain.
This version improves transaction efficiency and validator incentives, building on prior CometBFT optimizations. It follows February’s v3.4.0 upgrade, which saw a 320% price surge post-implementation. The Market Module’s revival aims to stabilize arbitrage opportunities and reduce volatility.
What this means: This is bullish for LUNC because restoring on-chain equilibrium could attract developers and traders, fostering ecosystem growth. (Source)
2. SDK 50.13 Integration (24 July 2025)
Overview: Enhances Terra Classic’s compatibility with Cosmos, enabling smoother cross-chain interactions.
Initially rejected due to audit gaps, validators mandated Orbit Labs’ review before approval. The update aligns Terra Classic with Cosmos’ IBC protocol, critical for decentralized app (dApp) scalability.
What this means: This is neutral for LUNC because while interoperability boosts utility, delayed implementation risks slowing momentum. (Source)
3. Binance Upgrade Support (13 August 2025)
Overview: Binance suspended LUNC/USTC deposits/withdrawals temporarily to facilitate the v3.5.0 transition.
The exchange’s technical backing minimizes disruptions for users and validators, reflecting institutional confidence. Binance burns ~441M LUNC monthly, compounding deflationary pressure.
What this means: This is bullish for LUNC because centralized exchange support enhances upgrade reliability and market sentiment. (Source)
Conclusion
Terra Classic’s codebase evolution emphasizes stability (v3.5.0), cross-chain utility (SDK 50.13), and ecosystem trust (Binance support). While technical strides are evident, validator coordination remains pivotal. Will sustained development reverse LUNC’s -38% 90-day trend?