The long-awaited Terra Classic V1.1.0 network upgrade has officially gone live, marking a pivotal milestone for the LUNC community. After approximately seven hours of intensive deployment, the upgrade successfully activated on the Terra Classic blockchain, fulfilling critical conditions set by Binance for the potential resumption of LUNC token burns.
This strategic update is more than just a technical refresh—it represents a significant step toward restoring trust, enhancing network functionality, and reigniting ecosystem momentum. With core improvements focused on governance, tax mechanics, and burn integrity, the V1.1.0 upgrade positions Terra Classic for renewed engagement from major exchanges and stakeholders.
👉 Discover how blockchain upgrades can impact token value and exchange support
What’s New in Terra Classic V1.1.0?
The V1.1.0 release is the first major implementation leveraging Terra Classic’s upgraded governance proposal mechanism. It was specifically designed to resolve outstanding issues that previously hindered Binance’s participation in LUNC burn activities.
Key features and changes include:
- Exemption of Binance-affiliated wallets from chain tax: A major request from Binance has been fulfilled—wallets associated with the exchange will no longer be subject to the standard transaction tax used to fund burns.
- Burn tax splitting functionality: The upgrade introduces enhanced flexibility in how burn taxes are distributed and applied across transactions.
- Permanent burn enforcement: Crucially, burned LUNC tokens will no longer be eligible for re-minting, addressing previous concerns about token supply integrity.
- Mandatory node update: Full node operators and validators must now run version v1.1.0 to remain synchronized with the network.
These changes were proposed by Edward Kim, associate professor at Drexel University and senior developer within the LUNC community, on February 14. His proposal emphasized that migrating to this version would embed governance-approved functionalities directly into the protocol layer.
Upgrade Execution: A Community Effort
The activation occurred at block height 11,734,000, slightly delayed from the initially projected February 28 timeline. Despite minor network instability during the transition, developers confirmed full operational recovery within seven hours.
Asobs, a prominent voice in the LUNC community, announced the successful restart via Twitter:
“LUNC network is back online! The update is live, and we’re moving forward.”
He further expressed optimism about Binance resuming its burn program:
“Binance LUNC burn is coming soon.”
Edward Kim later verified the successful execution of the upgrade, reinforcing confidence in the technical robustness of the new release. Supporters like The Vinh Nguyen, a Cosmos enthusiast and LUNC advocate, praised the development team's dedication during the extended upgrade window.
Why This Upgrade Matters for LUNC’s Future
The significance of V1.1.0 extends beyond code deployment—it reflects a maturing governance model where community-driven proposals lead to tangible protocol improvements. By directly addressing Binance’s requirements, the upgrade demonstrates responsiveness and adaptability, both essential traits for regaining institutional support.
Moreover, eliminating the possibility of re-minting burned tokens strengthens scarcity mechanisms, a key factor in long-term valuation dynamics. For investors and holders, this means greater assurance that deflationary efforts are sustainable and transparent.
👉 Learn how tokenomics updates influence investor sentiment and market trends
Core Keywords:
- Terra Classic V1.1.0
- LUNC network upgrade
- Binance LUNC burn
- LUNC token burn
- Terra Classic blockchain
- Chain tax exemption
- Permanent token burn
- Blockchain governance
Frequently Asked Questions (FAQ)
Q: What is the purpose of the Terra Classic V1.1.0 upgrade?
A: The primary goal is to meet Binance’s conditions for resuming LUNC token burns by exempting its wallets from chain tax, enabling burn tax splitting, and ensuring burned tokens cannot be re-minted.
Q: Does Binance have plans to restart LUNC burns?
A: As of now, Binance has not made an official announcement. However, since all technical requirements have been met by the V1.1.0 upgrade, a resumption is considered likely—though possibly at a reduced volume (up to 50% less than before).
Q: Can old versions of the Terra Classic node software still operate?
A: No. Validators and full node operators must upgrade to version v1.1.0 to stay in consensus with the network. Running outdated versions will result in disconnection.
Q: Will previously burned LUNC tokens be affected by this update?
A: No. The update prevents future re-minting of burned tokens but does not alter historical data or affect past burn events.
Q: How does the chain tax work under V1.1.0?
A: The chain tax remains active for most transactions but now excludes Binance-affiliated wallets. Collected taxes continue to fund burn events, with improved transparency through split-tracking mechanisms.
Q: Is this upgrade a sign of broader recovery for Terra Classic?
A: While challenges remain, this successful deployment signals strong community coordination and technical progress—positive indicators for ecosystem revival and renewed exchange confidence.
What Comes Next?
With the upgrade complete, attention turns squarely to Binance’s next move. The ball is now in their court: having fulfilled all stated prerequisites, the LUNC community awaits confirmation on whether burn operations will resume in March 2025.
Even if burns restart at half capacity, it would represent a major psychological and economic boost for LUNC holders. Regular, predictable burns help reduce circulating supply, potentially increasing scarcity and upward price pressure over time.
Additionally, this event sets a precedent for how decentralized communities can negotiate with centralized entities through transparent, on-chain governance—a model that could inspire other projects facing similar challenges.
👉 Stay ahead of crypto upgrades and exchange announcements with real-time market insights
Final Thoughts
The Terra Classic V1.1.0 upgrade is more than a technical fix—it's a testament to resilience, collaboration, and adaptive governance. By aligning protocol design with exchange requirements while preserving decentralization principles, the LUNC community has taken a decisive step toward sustainability.
While market reactions will depend on Binance’s response and broader crypto conditions in 2025, one thing is clear: Terra Classic is rebuilding—not just its codebase, but its credibility.
For investors, developers, and supporters alike, staying informed and engaged will be crucial as the ecosystem evolves. Whether you're tracking token burns, participating in governance votes, or monitoring exchange policies, every action contributes to the long-term trajectory of the network.
As the blockchain space continues to mature, initiatives like this underscore the importance of responsive development, clear communication, and community-driven innovation—pillars that will define the next generation of decentralized ecosystems.