Terra Classic is taking a major step forward as the network considers an upgrade to Cosmos SDK v0.53.x with IBC v2 Eureka support. A new community spending proposal has officially entered the voting stage, and early results show overwhelming support from validators and delegators.
At the time of writing, the proposal has received approximately 99.9 percent votes in favor and is widely expected to pass.
If approved, this upgrade will modernize the Terra Classic blockchain and significantly improve its interoperability within the Cosmos ecosystem.
The proposal builds on earlier discussions and feedback following Proposal 12142. Based on community input, OrbitLabs has suggested skipping the previously planned Cosmos SDK v0.50 upgrade and moving directly to v0.53.x. This approach reduces complexity and avoids the need for multiple mainnet upgrade events.
Why Upgrade Directly to Cosmos SDK v0.53
- Completes all required migrations in a single network upgrade, reducing coordination effort and minimizing downtime
- Uses Cosmos SDK v0.53.x, the latest stable long term release, improving future compatibility and maintenance
- Eliminates the need for an intermediate v0.50 mainnet deployment
- Enables IBC v2 Eureka, unlocking advanced routing and hub and spoke connectivity through the Cosmos Hub
- Improves cross chain flexibility and interoperability across the Cosmos ecosystem
Scope of the Upgrade
The proposed work includes upgrading core modules to ensure compatibility with Cosmos SDK v0.53.x, along with Wasmd v0.61.x. In addition, IBC Go will be upgraded directly from version 7.10.0 to version 10.x. This change activates IBC v2 routing logic and allows more advanced message flows such as multi hop token transfers.
Testing and quality assurance play a key role in this proposal. The upgrade will first be deployed on the rebel 2 testnet, where extensive testing will be conducted. This includes connection and channel handshakes, ICS 20 token transfers, and IBC v2 message routing between multiple Cosmos SDK v0.53 chains. Additional testing will ensure smart contracts and standard SDK messages continue to function normally after the upgrade.
Updated documentation will also be provided. Validator runbooks will be revised to reflect a single step upgrade process. Any breaking changes will be clearly documented, and examples of IBC v2 message formats will be shared for developers and integrators.
How This Plan Improves on the Previous Proposal
Under the original plan, Terra Classic would have upgraded to Cosmos SDK v0.50 first, followed by a later upgrade to v0.53. The updated proposal replaces this with a single upgrade directly to v0.53.x. This change reduces workload, avoids repeated network disruptions, and delivers IBC v2 support immediately instead of delaying it.
Budget Overview
The total budget requested for the combined upgrade is 56,000 US dollars. The funding is divided into two phases to ensure transparency and accountability.
Phase One: Testnet Implementation and Validation
Budget: 40,000 US dollars
This phase covers code migration to Cosmos SDK v0.53.x, rebel 2 testnet deployment, extended IBC v2 testing, and the publication of preliminary documentation for developers.
Phase Two: Mainnet Execution and Post Upgrade Support
Budget: 16,000 US dollars
This phase includes governance preparation, validator coordination, mainnet upgrade execution, and immediate post upgrade monitoring.
The additional 8,000 US dollars compared to the earlier proposal reflects the extra work required to migrate directly to SDK v0.53.x, enable IBC v2 Eureka, and extend the testing period. The exact LUNC amount for each phase will be calculated at the time of submission for each community spend proposal.
Proposed Timeline
The upgrade process is planned over approximately thirteen weeks. The first eight weeks will focus on core code migration and testnet deployment. Weeks nine and ten are reserved for extended testnet testing, particularly for IBC v2 message routing and failure scenarios. Week eleven will focus on documentation and final reviews. Weeks twelve and thirteen will cover governance submission and mainnet upgrade execution.
This timeline is slightly longer than the original plan, adding extra time to ensure IBC v2 functionality is fully tested before reaching mainnet.
Risks and Mitigation
Cosmos SDK v0.53.x introduces optional features such as protocol pools, epochs, and unordered transactions. To reduce risk, these features will remain disabled unless future governance decides otherwise.
Another potential risk is related to IBC v2 interoperability. To address this, full end to end testing will be conducted across multiple Cosmos SDK v0.53.x chains during an extended testnet phase.
Expected Outcome
Once completed, Terra Classic will operate on the latest stable Cosmos SDK release and fully support IBC v2 Eureka. The network will be better positioned for cross chain activity, while avoiding the need for a second major upgrade. Validators and developers will benefit from a well documented and tested upgrade path, strengthening the long term sustainability of the Terra Classic ecosystem.
