About 14 Billion LUNC Taken Out of Terra Classic Circulating Supply. Here’s the Significance

On Monday, a major milestone was reached in the world of cryptocurrency when nearly 14 billion Terra Classic (LUNC) was stacked and moved out of circulation.

A new Terra Classic (LUNC) enthusiast has staked up to 13.98 billion LUNC tokens just a day after the project was launched. This milestone was achieved through uneven transactions involving redelegation events, mostly from LUNC ONE, a Chinese validator.

Read Also: Binance Burns Over 1.2 Billion LUNC In Single Transaction as its Total Burns Exceed 31 Billion

The coins were removed from circulation as part of an agreement between LUNC developers and a group of investors who had purchased the coins in a private sale back in 2017. The agreement stipulated that the coins would be taken out of circulation for a period of three years, with the understanding that the coins would be returned to circulation after that period had ended.

Going by the uncertainty in the market, some financial advisors have advised caution to investors. Meanwhile, the brain behind the project recently came up to dispel the rumor and share the more positive impacts of the Terra Classic ecosystem.

The removal of the coins from circulation is expected to have a significant impact on the value of the cryptocurrency. With fewer coins in circulation, the value of the remaining coins is expected to increase significantly. This could lead to a surge in the price of the cryptocurrency, as investors look to capitalize on the increased value of their holdings.

After a series of redelegations, the calculated amount of staked Terra Classic currently stands at 962.3 billion holding 14% of the total LUNC supply of 6.85 trillion tokens. The circulating supply of the token now stands at 5.89 billion LUNC.

Read Also: Is LUNC to $1 Mission Still Feasible As Terra Classic Passes USTC Re-peg Proposal? Details

The removal of the coins also has implications for the future of the cryptocurrency. With fewer coins in circulation, it becomes more difficult for malicious actors to manipulate the market and undermine the long-term stability of the currency. It also makes it easier for the developers to implement new features and updates of the cryptocurrency, as they can be sure that there is a sufficient number of coins in circulation to support the development of the currency.

Only time will tell what the ultimate effect of the removal of the coins from circulation will be, but it is clear that the impact of this move will be felt for some time to come.

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