Terra Luna Classic Faces Challenges Amid Recovery and Crypto Slump  

• Orbit Labs progresses Terra Luna Classic upgrades, aligning it with the Cosmos ecosystem for enhanced security and developer access. 
• The Terra community plans extensive LUNC and USTC burns, supported by Binance, targeting 1.8 billion tokens in inactive wallets. 
• LUNC prices dropped 15%, following altcoin trends, while USTC saw a slight recovery despite declining trading volumes. 

The Terra Luna Classic community’s recovery efforts have encountered difficulties as the broader crypto market faces turbulence. Traders remain cautious, particularly with significant events like Donald Trump’s inauguration approaching on January 20. 

Software Upgrade to Remove Forks 

Blockchain developer Orbit Labs announced the completion of the first phase of removing fork modules from the Terra Luna Classic network. A governance vote on the upgrade proposal is scheduled for next week, and the mainnet upgrade is planned for February. 

According to Orbit Labs, the upgrade transitions previously forked repositories into the mainstream Cosmos ecosystem, simplifying maintenance and enhancing security. Notable improvements include fixes for multi-send handling in the “reverse charge” implementation. 

Plans include burning 1.8 billion USTC tokens from Luna Foundation Guard-associated wallets and all USTC tokens in the Oracle rewards pool. The community is also targeting inaccessible wallets for further token reductions, aiming for a potential repeat of USTC. 

Boosting Network Utility with Upgrades 

The Terra Luna Classic network recently upgraded to version 3.3.0, designed to enhance utility and attract developers to the ecosystem. This update removes barriers to building decentralized applications and introduces new project opportunities. 

Projects like Terraport, Selenium, Garuda DEX, and TerraCasino are actively expanding the Terra Luna Classic ecosystem. Selenium Protocol, modeled after the original Mirror Protocol, plays a key role in these developments. 

Legal Woes for Do Kwon

Terraform Labs’ co-founder Do Kwon has been accused of fraud and money-laundering conspiracy a few days after being extradited to the U.S. to respond to a nine-count indictment. Despite having issued a not-guilty plea, the man’s criminal trial cannot begin before January 2026 as long as detectives continue to unravel encrypted devices and hack overseas communications.

Currently, LUNC is down 15% in the last week with bulls posting at $0.0001022. It supports the entire altcoin market structure and is placed before the critical Fibonacci 0.618. Analysts predict increased volatility in the near term, with price movement closely tied to Ethereum and Bitcoin dynamics.