New LUNC Proposal Targets Hyperlane Bug With 13 Contract Migrations

A new LUNC governance proposal is seeking to upgrade 13 Hyperlane infrastructure contracts on Terra Classic after a duplicate signature counting vulnerability was identified in the multisig Interchain Security Module.

The proposal would migrate governance owned Hyperlane contract instances to newer code that includes a fix for upstream pull request #142. The issue involves how validator signatures are counted, making the migration an important infrastructure and security update for Terra Classic.

What Is the New LUNC Proposal About?

The proposal focuses on migrating 13 Hyperlane contract instances currently controlled by Terra Classic governance.

These contracts would be migrated to code based on the terra-classic-hyperlane/cw-hyperlane main branch at commit cd972f84bbd5280d8731b3e02eaa9cf21f3dc670.

The selected code includes the upstream fix associated with pull request #142, which addresses duplicate validator signature counting in the multisig ISM.

In simple terms, the update is designed to make sure the same validator signature cannot be incorrectly counted more than once when the Hyperlane security mechanism verifies messages.

Why Does Duplicate Signature Counting Matter?

Hyperlane uses validators and multisig security mechanisms to verify messages moving between blockchain environments.

Validator signatures are an important part of that verification process. If the same signature can be counted multiple times, the system could potentially calculate the number of valid signatures incorrectly.

The upstream fix addresses this behavior by preventing duplicate validator signatures from being counted multiple times.

For Terra Classic, migrating the affected governance owned contracts would bring the infrastructure in line with the corrected implementation.

13 Hyperlane Contracts Are Included

The proposal covers 13 governance owned Hyperlane contract instances.

The migration uses the Terra Classic Hyperlane implementation containing the upstream security fix, along with several additional commits related to the implementation.

The selected code also includes commits associated with upstream changes #138, #139 and #143.

These additional changes are described as cosmetic or feature related, while the primary security reason for the migration is the duplicate signature counting fix from #142.

Community Research Identified the Issue

The issue was independently identified by Terra Classic community researcher Fragwuerdig.

The finding was subsequently documented in the Terra Classic documentation covering the governance claim of Hyperlane infrastructure ownership and its security audit.

This is significant because the proposal is not simply introducing a new feature. It is responding to an identified issue in infrastructure that is already under Terra Classic governance control.

What About Warp LUNC and Warp USTC?

The proposal does not include Warp LUNC or Warp USTC.

These two native collateral warp contracts have no contract administrator. Their admin fields are empty, meaning the contracts are permanently immutable.

Because there is no contract administrator capable of authorizing a migration, neither Warp LUNC nor Warp USTC can be upgraded through a governance proposal.

This distinction is important because governance ownership of Hyperlane infrastructure does not mean every Hyperlane related contract can automatically be modified.

The Warp LUNC and Warp USTC contracts remain outside the scope of this migration.

IGP Oracle Admin Already Transferred to Governance

The proposal also includes the IGP Oracle administration.

However, this is not a new transfer of ownership. The IGP Oracle admin was already transferred to Terra Classic governance on September 30, 2026.

The transfer was recorded in transaction:

2182AB478B5197245C50CA6657D55BAF7AEBE41529D938F88BE36B975F84F4B6

The current proposal therefore incorporates the IGP Oracle into the broader Hyperlane infrastructure migration rather than initiating its governance ownership transfer.

Why This Matters for Terra Classic

The proposal highlights an important part of maintaining blockchain infrastructure after ownership has moved under governance.

Governance ownership gives the Terra Classic community control over certain infrastructure contracts, but that control also creates a responsibility to monitor, maintain and upgrade those contracts when security issues are identified.

Migrating the affected Hyperlane contracts would allow Terra Classic governance to deploy code containing the upstream duplicate signature counting fix while keeping the relevant infrastructure under governance control.

The proposal also demonstrates why independent community research and infrastructure audits can play an important role in identifying issues before they become larger problems.

What the Proposal Would Change

The migration would therefore focus on updating contracts that can be administered by governance while leaving permanently immutable contracts unchanged.

A Governance Proposal Focused on Infrastructure Security

The new LUNC proposal is primarily an infrastructure maintenance and security update rather than a new feature designed to directly change Terra Classic tokenomics.

Its central objective is to migrate 13 governance owned Hyperlane contracts to code containing the upstream fix for duplicate validator signature counting.

For Terra Classic, the proposal represents another governance decision involving the long term maintenance of cross chain infrastructure. If approved, the migration would address the identified signature counting issue while keeping the affected contracts under governance control.

The proposal also makes clear that some Hyperlane related contracts, including Warp LUNC and Warp USTC, cannot be migrated because they have no administrator and are permanently immutable.