The Terra Luna Classic (LUNC) community has rejected a proposal to increase the validator set on the blockchain from 100 to 130. This move was seen as an initial effort to merge the Terra Classic ecosystem with the Terra (LUNA) community, following the settlement between Terraform Labs and the U.S. Securities and Exchange Commission (SEC).

Top validators, such as Allnodes and Luna Station 88, voted against the proposal, stating that the Terra Classic chain is not yet ready for such an expansion. The proposal received only 30.59% "Yes" votes, with 46.17% "No" and 22.59% "Abstain" votes.

Despite this setback, the LUNC and USTC prices have seen a surge in the past 24 hours. LUNC price has jumped by more than 10%, currently trading at $0.00008246, with a 24-hour trading volume increase of 50%. Similarly, USTC price has risen by over 5%, trading at $0.0181, with a 136% increase in trading volume.

The futures open interest for both LUNC and USTC has also seen a significant rise, hinting at a possible reversal in the market sentiment. The Terra Classic community remains focused on reducing the circulating supply of LUNC and USTC tokens, with ongoing burn initiatives.

Despite the rejection of the proposal to increase the validator set, the Terra Luna Classic ecosystem continues to navigate the challenges and remains committed to improving its fundamentals.