Terra Luna Classic v3.6.0 Upgrade: Post-upgrade Analysis and News

On October 20, 2025, Terra Luna Classic (LUNC) successfully executed its v3.6.0 network upgrade. This release represents one of the most significant milestones in the Terra Classic ecosystem, bringing the chain fully back into alignment with upstream Cosmos SDK developments and restoring critical functionalities that had been delayed due to prior module forks. The upgrade addresses both architectural and operational bottlenecks, enhances validator reliability, and lays the foundation for future cross-chain interoperability.

This article provides a technical analysis of the upgrade, examining module-level changes, code-level adjustments, validator considerations, and the broader implications for the Terra Classic network.

1. Full Cosmos Network Compatibility

1.1 IBC Protocol Restoration

The most notable achievement in v3.6.0 is the full restoration of Inter-Blockchain Communication (IBC) support. IBC is the backbone protocol enabling secure and trust-minimized communication between independent blockchains in the Cosmos ecosystem.

Before v3.6.0, Terra Classic’s forked modules had caused minor incompatibilities with IBC specifications, particularly in channel handshake processes and packet commitment verification. With v3.6.0:

  • The ibc module has been fully aligned with Cosmos SDK v0.48.0.
  • client/consensus_state.go and core/channel.go were refactored to remove legacy fork logic, ensuring correct packet sequencing and acknowledgement handling.
  • Validators now validate packet commitments according to the standard Merkle proof verification, reducing divergence risk between nodes.

This means that assets like LUNC and USTC can now interact seamlessly with Cosmos chains such as Osmosis, Cosmos Hub, and other IBC-enabled networks, enabling cross-chain swaps, staking derivatives, and DeFi applications that rely on trustless token transfers.

1.2 Implications for dApps and Ecosystem Growth

With proper IBC support restored, decentralized applications can now operate with composable liquidity across multiple chains. For example, a liquidity provider can now stake LUNC on Osmosis liquidity pools while retaining the security guarantees of Terra Classic’s validators.

The restored IBC also reduces operational friction for infrastructure providers. Relayers no longer need to maintain workarounds for module incompatibilities, resulting in reduced latency and fewer dropped transactions.

2. Removal of Forked Modules

2.1 Historical Context

After the 2022 collapse, Terra Classic adopted forked versions of several Cosmos SDK modules, particularly for bank, staking, auth, and wasmd modules. These forks introduced the following issues:

  • Maintenance divergence from upstream Cosmos SDK and CometBFT releases.
  • Increased risk of network forks due to inconsistent code updates.
  • Security patch delays because upstream fixes required manual backporting.

2.2 v3.6.0 Implementation

The upgrade removes forked modules and migrates the chain to standard upstream versions:

  • Bank module: replaced with Cosmos SDK v0.48 implementation. State migration included careful translation of account balances and vesting schedules.
  • Staking module: fork removed. Validator set pruning and delegation logic now follow upstream specifications.
  • Wasmd module: Phase 2 of the fork removal. Contracts compiled in CosmWasm v0.26 now support native multi-contract calls and deterministic gas consumption, improving both performance and security.

The migration involved two critical operations:

  1. State transformation scripts: custom Go scripts were used to convert forked state objects into compatible formats for upstream modules. This included account structures, delegation mappings, and validator signing info.
  2. Binary replacement: new binaries were built against the standard Cosmos SDK and CometBFT libraries. All nodes had to upgrade to avoid consensus failures.

2.3 Technical Implications

Removing forked modules reduces technical debt and allows Terra Classic to follow upstream security patches automatically. It also enables third-party developers to target the blockchain using standard Cosmos SDK tooling without modification.

3. Performance Enhancements

The upgrade incorporates multiple performance optimizations:

  • Memory and CPU optimizations: By removing legacy fork code, unnecessary loops and redundant state queries were eliminated.
  • Block proposal efficiency: Validators now generate blocks using optimized merkle tree construction for transactions.
  • Gas accounting improvements: Deterministic gas metering in Wasmd reduces transaction rejection due to overestimation or underestimation of computational costs.
  • Pruning enhancements: State pruning has been refactored to reduce disk I/O while maintaining historical block query support.

These optimizations collectively improve TPS (transactions per second), validator synchronization times, and overall network reliability.

4. Governance and Community Involvement

The upgrade exemplifies community-driven governance in action. Proposals to remove forked modules were first discussed on forums:

  • Proposal discussions included on-chain voting to approve module migration schedules.
  • Validators were provided with upgrade timelines to avoid chain splits.
  • Communication via social channels ensured node operators could upgrade binaries.

The governance process demonstrates how Terra Classic maintains decentralized decision-making while executing technically complex upgrades.

5. Validator and Node Considerations

5.1 Node Upgrade Requirements

All full nodes and validators were required to upgrade to the v3.6.0 binary. Critical considerations included:

  • Backing up validator signing keys and node databases.
  • Performing a dry run of the upgrade in testnet environments.
  • Updating systemd service configurations to point to the new binary.

5.2 Consensus Implications

  • CometBFT version alignment ensures deterministic block finalization.
  • Removed forks eliminate prior divergence in slashing and jailing logic.
  • Validator sets can now process delegation updates consistently according to upstream staking logic.

5.3 Monitoring and Stability

Post-upgrade, validators must monitor:

  • Block propagation times.
  • IBC packet acknowledgment rates.
  • CPU and RAM utilization under new Wasmd contract execution.

6. Long-Term Implications

v3.6.0 establishes a robust foundation for Terra Classic:

  • Enables further upgrades aligned with Cosmos SDK releases.
  • Strengthens cross-chain interoperability.
  • Enhances contract execution reliability for dApps and DeFi protocols.
  • Reduces the risk of accidental forks due to misaligned forked code.

This release positions Terra Classic as a technically modern and community-governed blockchain capable of scaling ecosystem participation.

Summary:

The Terra Luna Classic v3.6.0 upgrade is not only a milestone in the chain’s history but also a demonstration of professional-grade blockchain engineering.

By removing legacy forks, restoring full Cosmos compatibility, and optimizing performance, the upgrade ensures both network reliability and developer accessibility.

Validator operators, dApp developers, and the wider community now benefit from a blockchain that is both technically sound and strategically positioned for growth ✊

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