$LUNC Terra Classic (LUNC) v3.6.1 upgrade was completed on December 18, 2025 (block height 26,479,000) on the mainnet. The core changes focus on three main areas: "Legacy Contract Fixes + Dependency Updates + CosmWasm Enhancements", detailed as follows:
1.
Legacy Contract Fixes
Addressed compatibility vulnerabilities in old contracts deployed before the 2022 crash, eliminating potential reentrancy and permission bypass risks, paving the way for reopening the LUNC-USTC arbitrage channel [^0^].
2.
Comprehensive Dependency Upgrades
Upgraded the underlying dependencies of the Cosmos SDK to the 0.47.x series, and simultaneously updated core modules such as IBC and Tendermint, enhancing interoperability with other chains in the Cosmos ecosystem and reducing the probability of conflicts in future upgrades [^2^].
3.
CosmWasm Virtual Machine Enhancements
Supports the Wasm 1.4 instruction set, with gas measurement accuracy improved by 30%, and the contract deployment limit increased from 800 KB to 1.2 MB, providing runtime space for complex DeFi applications (such as order book DEX and leveraged lending) [^4^].
4.
Security and Stability
Introduced a "chain upgrade rollback" mechanism (codenamed v13_1): if the mainnet fails to produce blocks within 30 minutes after the upgrade, it can automatically revert to v3.6.0, reducing downtime risks; this feature has been validated under 48 hours of stress testing on the rebel-2 testnet [^5^].
5.
Economic Model Fine-tuning
Post-upgrade, the on-chain parameter maintains a 1.2% burn tax, but a new "tax-exempt whitelist" interface has been added at the contract layer, allowing governance to designate specific DeFi pools or bridging contracts as tax-exempt addresses to incentivize liquidity return [^7^].
6.
Supporting Measures
Seven exchanges, including Binance and KuCoin, suspended deposits/withdrawals for 6 hours to facilitate the upgrade, and node operators only need to replace the terrad binary without needing to re-snapshot or migrate state.
Summary: v3.6.1 is a maintenance upgrade focused on "repairing old issues + complementing the chain + expanding capacity". While the token economy remains unchanged, the cleanup of technical debt and enhancement of Wasm capabilities lay the foundation for the major version planned for Q1 2026, which includes "SDK 50 cross-chain staking".