Holders of LUNA and LUNC may face some difficulties as a result of this new…

As of November 28th, Terra [LUNA] was one of the trending topics on Twitter and could be considered a topic of discussion in the crypto community. This was due to the appearance of a new ‘Merge’ proposal on the social media platform.

Several popular Twitter handles revealed that the new Merge Protocol was created by a group of developers. This was done with the intention of uniting the Terra and Terra Classic [LUNC] ecosystems.

The Merge Protocol devs say it is set to be released shortly after IBC opens, provisionally in December.

The protocol will reward users for swapping their $LUNC directly into $LUNA by paying them extra DEX incentives for the provision of long term liquidity. pic.twitter.com/R0MqKjm1As

— ⚛️ ⚛️ (@LUNCDAO) November 28, 2022

The Merge Protocol would also reward users for swapping their LUNC directly into LUNA by paying them extra DEX incentives for the provision of long-term liquidity. The Merge also proposed to sell the LUNC Oracle Rewards to buy LUNA, killing LUNC and airdropping proportionate LUNA to current stakeholder accounts.

As per the developers, the new Merge Protocol was set to be released shortly after IBC opens, provisionally in December.

LUNA community remains divided

As usual, opinions were diverse in the crypto community. Most LUNC enthusiasts were against this protocol, while a few favored the move. LUNC DAO mentioned that, though this proposal was completely legitimate, they had no plans of supporting the protocol and stood against the same.

$LUNC DAO is 100% against The Merge, but equally, Merge Protocol IS a legitimate open source + noncustodial + permissionless DeFi protocol

Regardless of which decentralized apps you will personally be using, everything is fair game in DeFi

The fake one is an ACTUAL SCAM, REPORT

— ⚛️ ⚛️ (@LUNCDAO) November 28, 2022

Despite the storm of tweets, both tokens did witness the effect of the ongoing commotion. Though Terra was trending, its social volume went down, and so did the positive sentiments around it. LUNC’s chart also followed a similar pattern, as its social volume and positive sentiments registered declines as well.

Source: Santiment

Should investors be concerned?

Interestingly, CoinMarketCap’s data revealed that this event actually positively affected LUNA and LUNC, as they both registered more than 3% daily gains. At press time, LUNA was trading at $1.60, while LUNC was valued at $0.0001619. However, only time will tell which way the coins will trend.

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