Many people wonder what would happen if LUNC staking completely stopped—not just the APR dropping to zero, but no one staking at all.
The consequences would be severe for Terra Classic:
1. The network would become unsafe – Without staked LUNC, validators can’t secure the blockchain. This leaves Terra Classic open to attacks or could even stop new blocks from being produced.
2. Governance would break down – Staking gives holders voting power. Without it, a few large wallets could take control of decisions, leaving the community with no say.
3. Staking rewards would vanish – No staking means no rewards. Long-term holders lose incentives to stay committed, weakening community support.
4. Market trust would collapse – Low staking participation signals weak community backing, driving prices down and scaring off potential investors.