Source from:

• https://validator.info/terra-classic/governance/12194
• https://discourse.luncgoblins.com/t/terra-classic-upgrade-to-cosmos-sdk-v0-53-with-ibc-v2-eureka-support/178

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Terra Classic Upgrade to Cosmos SDK v0.53 + IBC v2 (Eureka)

Executive Summary

Following Proposal 12142 (Wasmd Unfork) and community feedback, OrbitLabs proposes upgrading Terra Classic directly to Cosmos SDK v0.53.x — skipping the intermediate v0.50 mainnet deployment.

This approach is more efficient, reduces coordination overhead, and unlocks IBC v2 (Eureka) support, enabling hub-and-spoke cross-chain routing via Cosmos Hub. By consolidating the migration process, we minimize disruption while delivering all planned benefits — plus the next generation of interoperability.

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Motivation

• Efficiency: One coordinated upgrade event, reducing downtime and complexity.
• Future-Proofing: Aligns Terra Classic with the latest stable long-term SDK release (v0.53.x).
• Interoperability: Enables IBC v2 (Eureka) multi-hop routing and hub-centric connectivity.
• Security & Performance: Gains improvements from CometBFT v0.38.x, Wasmd v0.61.x, and updated IAVL.

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Scope of Work

1. Core Upgrade

• Upgrade to:
  • Cosmos SDK v0.53.x
  • CometBFT v0.38.x
  • Wasmd v0.61.x / WasmVM v2.2.x
  • IBC-Go v10.x (IBC v2 / Eureka)
• Migrate all main modules for SDK v0.53 compatibility.
• Keep optional Cosmos SDK v0.53.x features (x/protocolpool, x/epochs, unordered transactions) disabled by default until governance explicitly enables them.

2. IBC v2 (Eureka) Enablement

• Integrate IBC v2 routing logic into the application wiring.
• Validate multi-hop MsgTransfer routes between two or more v0.53.x chains.
• Test failure scenarios to ensure robust packet retries and acknowledgments.

3. Testnet Deployment & QA

• Deploy the upgraded codebase on rebel-2 testnet.
• Execute:
  • Connection and channel handshake tests.
  • ICS-20 token transfers.
  • IBC v2 multi-hop routing and error-handling tests.
  • Full Wasm/SDK message suite.
• Publish test results and known issues for validators and dApp developers.

4. Documentation

• Update validator runbooks for a single-step upgrade.
• Document any breaking changes and provide migration guidance for dApps.
• Include examples of IBC v2 message formats for integrators.

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Budget

Total: $56,000 USD (paid in LUNC at time of spend proposals)

Phase	Deliverables	Budget
Phase 1: Testnet Implementation & Validation (Weeks 1-10)	Code migration, rebel-2 deployment, IBC v2 tests, publication of results and developer guidance.	$40,000 USD
Phase 2: Mainnet Execution & Post-Upgrade Support (Weeks 11-13)	Governance proposal preparation, validator coordination, upgrade execution, immediate post-upgrade support.	$16,000 USD

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Timeline

Week	Milestone
1-8	Core upgrade execution: SDK v0.53.x migration, CometBFT v0.38.x, Wasmd v0.61.x, IBC-Go v10.x integration, rebel-2 deployment
9-10	Extended QA phase: IBC v2 multi-hop routing tests, failure scenarios, store integrity checks
11	Documentation finalization, validator/dApp guidance, governance proposal preparation
12-13	Governance vote, mainnet upgrade execution, immediate post-upgrade monitoring

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Risks & Mitigation

• SDK v0.53 Optional Modules: Mitigation: Keep x/protocolpool, x/epochs, and unordered transactions disabled by default. Enable only via governance after evaluation.
• IBC v2 Interoperability Bugs: Mitigation: Conduct full end-to-end tests with two/three v0.53.x chains during testnet phase, with an extended QA period to ensure stability.

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Community Impact

• Stronger Security & Stability: Improved consensus layer and memory efficiency.
• Better Developer Experience: Modern SDK modules, faster Wasm execution, and easier dApp maintenance.
• Future-Ready Interoperability: Hub-and-spoke IBC v2 routing available immediately post-upgrade.
• Lower Operational Overhead: One upgrade event instead of two, minimizing disruption for validators and the community.

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Outcome

Upon completion, Terra Classic will:

• Run on the latest stable Cosmos SDK v0.53.x.
• Be fully IBC v2 (Eureka) capable and hub-route ready.
• Provide a smooth, validated upgrade path for validators and developers.
• Avoid duplicated costs and network downtime from a two-step upgrade process.

We invite the Terra Classic community to support this direct-to-v0.53 upgrade and actively participate in testing, validation, and coordination to ensure a smooth and successful rollout.

Authors:[OrbitLabs]

Proposal forum URL:

Votes options context:Yes: Approve the direct upgrade to Cosmos SDK v0.53.x with IBC v2 (Eureka) and the listed budget. No: Reject this upgrade plan and budget. Abstain: No strong opinion; accept majority decision. No with veto: Consider the proposal harmful.