Why the Change Is Being Considered

The proposal highlights three main benefits of a direct upgrade:

• Efficiency: One mainnet event instead of two, reducing complexity.
• Future proofing: Cosmos SDK v0.53.x is the latest stable release.
• Interoperability: Full IBC v2 Eureka support, unlocking hub and spoke routing across the Cosmos ecosystem.

Key Points in the Proposal

The suggested plan includes:

• Migrating directly to Cosmos SDK v0.53.x and Wasmd v0.61.x.
• Upgrading IBC Go to v10.x with IBC v2 routing logic.
• Testing on the rebel 2 testnet with extended validation for IBC v2 message flows.
• Updating validator documentation for a single step upgrade process.

Budget Under Review

The proposed budget stands at $56,000 USD, divided into:

• Phase 1 ($40,000): Testnet implementation, validation, and documentation.
• Phase 2 ($16,000): Mainnet preparation, governance proposal, and post upgrade monitoring.

This is $8,000 higher than the earlier v0.50 proposal, reflecting the broader scope of work and extended testing required.

Timeline If Approved

The draft timeline outlines a 13 week process, starting with code migration and testnet deployment, followed by two weeks of extended IBC v2 testing, and concluding with governance submission and a potential mainnet upgrade.

Risks and Considerations

The community is reviewing potential risks such as optional SDK v0.53 features and interoperability bugs with IBC v2. Proposed mitigations include disabling unnecessary modules and running end to end multi chain tests before any mainnet rollout.

What This Means for Terra Classic

If the community approves this proposal, Terra Classic would:

• Transition directly to the latest Cosmos SDK release.
• Gain IBC v2 Eureka support for expanded interoperability.
• Avoid the cost and downtime of two separate upgrades.

For now, the plan remains under community discussion, with validators and developers actively providing feedback before any governance vote.