LUNC and USTC Community Pool Reserve Ceiling Proposal Rejected
A proposal to establish new reserve ceilings for the Terra Classic Community Pool has been rejected by the community.
The proposal sought to set the Community Pool reserve ceiling at 7 billion LUNC and 60 million USTC. Any amount held above these proposed limits would have been designated for routing to the Oracle Module.
The proposal was designed as a governance policy rather than a direct fund transfer or software upgrade. Its approval would not have moved any LUNC or USTC immediately, nor would it have introduced changes to the Terra Classic blockchain code.
What Did the Proposal Aim to Do?
The main objective was to establish a defined maximum reserve for the Community Pool.
Under the proposal, the Community Pool would retain:
- 7 billion LUNC
- 60 million USTC
Any surplus above these levels would then have been eligible to be routed to the Oracle Module through separate governance actions.
The idea was to create a clearer framework for managing Community Pool funds while directing excess reserves toward the Oracle Module.
No Funds Would Have Been Transferred Automatically
An important part of the proposal was that it did not directly transfer any funds.
The vote was a text only governance proposal. Even if it had passed, separate proposals would still have been required to authorize the actual LUNC and USTC transfers.
A later software upgrade vote would also have been required for any changes that needed to be implemented through blockchain code.
Therefore, approval of the reserve ceiling proposal alone would not have resulted in an immediate movement of Community Pool assets.
Community Rejects the Proposal
The proposal ultimately failed to receive enough support and was rejected by the Terra Classic community.
As a result, the proposed reserve ceilings of 7 billion LUNC and 60 million USTC are not established through this proposal.
The proposed framework for routing surplus Community Pool funds to the Oracle Module also does not take effect based on this vote.
What Happens Next?
Because the proposal was rejected, any future attempt to establish reserve ceilings or redirect excess Community Pool funds would require a new governance proposal.
If the community revisits the idea, a new proposal would need to define the reserve limits, the process for handling surplus funds, and any required technical changes.
For now, the rejected proposal does not change the existing Community Pool reserve policy or automatically transfer funds to the Oracle Module.
Conclusion
The LUNC and USTC Community Pool reserve ceiling proposal has been rejected by the Terra Classic community.
The proposal would have established reserve ceilings of 7 billion LUNC and 60 million USTC, with surplus funds intended to be routed to the Oracle Module. However, the proposal was only a governance framework and would not have transferred funds or changed the blockchain by itself.
Any future changes to Community Pool reserves or transfers to the Oracle Module will require separate governance proposals and, where necessary, additional technical upgrades.
