The Terra Classic community has been thrown into fresh controversy after millions of LUNC tokens that were recently minted were spotted on StakeBin, the platform that tracks the increase and decrease in LUNC supply.
According to a green candle spotted on StakeBin, the blockchain has minted about 200 million LUNC tokens at a time when the community wants the supply to keep dropping to pave way for the dream revival in terms of price. As expected, this action left some community members flabbergasted.
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According to a Terra Classic enthusiast, who called the attention of the teeming community members to the occurrence, the blockchain minted a total of 173 million LUNC within the last 24 hours.
Did we just minted another 173M #Lunc ? pic.twitter.com/TBlSkgV5rT
— SSL (@CRYPTOSHAWN7861) October 26, 2022
Terra Rebels Clarifies the Reason for the Minting
In a tweet meant for clarification, Tobias Andersen, a member of the Terra Rebels, who is also known on Twitter as Zaradar, shared the screenshot of the clause in the recently passed Terra Classic proposal 5234, which allows the minted LUNC spotted.
— Tobias Andersen (@ZaradarTR) October 26, 2022
Read Also: New Way to Effectively Burn Terra Classic (LUNC) Supply Introduced: Details
Before the new proposal was passed, Edward Kim, the author of the 1.2% LUNC tax burn proposal, explained in a blog post that the proposal fulfills two major purposes. It lowers the taxes from 1.2% to 0.2% and takes 10% of the seigniorage collected to the community pool at the end of the epoch.
According to Kim, the approval of the proposal implies that the members of the community are ready to burn 90% of the total tax during the epoch, while the remaining 10% meant to be sent to the community pool will return to the circulating supply like newly minted tokens.
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