Following the launch of Terraport, a decentralized crypto exchange built on the Terra Classic layer-2 network in March, several members of the LUNC community are eager to know when the project would begin LUNC burns.
In response, the pseudonymous crypto influencer ClassyCrypto hinted at when Terraport will begin to burn LUNC. Also, he revealed that over 30 million TERRA tokens and counting have been staked on the DeFi platform within one week of being launched. This staked volume indicates that more than $659,799 are locked in the Terraport liquidity pool farm.
While TERRA is the native token of Terraport Finance, the team is more focused on burning LUNC than growing its value, Classy implied. According to him, the team isn’t aiming to take TERRA to $1 but a huge TERRA trading volume is needed to burn more LUNC tokens.
He wrote, “The goal for TERRA isn’t to reach $1, the goal for TERRA is to bring volume to $LUNC and give a large percentage of our treasury toward burning LUNC. The ultimate goal for our project is to bring massive burns to Terra Classic.”
Responding to a community member who asked about LUNC burns from Terraport, the crypto influencer remarked that the first massive LUNC burns from Terraport could come on Friday or anytime soon. “Yeah! I do actually know when the $LUNC burns are coming. Could be Friday. Could be not. Take that as you want,” he tweeted.
Terraport and LUNC Burns
As stated in Terraport’s whitepaper and reiterated by senior members of the project team — TerraCVita — the Terra Classic layer-2 DeFi project is primarily designed to burn LUNC.
Categorically, the team pinpointed that 27% of Terraport Treasury will be used to buy back LUNC tokens and then burn them, resulting in tens of millions of LUNC being taken out of supply forever every week.
Part of Terraport’s whitepaper reads, “27% of all funds going to the treasury burns $LUNC, and 22% burns $TERRA, the rest goes to the functioning and features of Terraport. The more volume that goes through Terraport the more $LUNC is burned regardless of pairs traded. It is reasonable to expect that with sufficient volume billions of $LUNC can be burned. A few million dollars swapped will burn 10’s of millions of $LUNC per day.”
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