After the launch of the Terra 2.0 blockchain, which birthed the new token codenamed LUNA 2.0, some investors who have not lost hope in the crashed token believe that Terra Classic (LUNC) can still be revived.
Two Terra Classic (LUNC) Burn Proposals Launched and Passed
To put their determination to work, a group of Terra investors launched and passed two separate Terra Classic (LUNC) burn proposals about a week ago.
The first proposal targets to burn 1.2% of all LUNC transactions (buys and sells). This implies that 1.2% of LUNC tokens bought or sold will be burned in order to ignite a notable increase in demand. This proposal needs the help of exchanges.
The second proposal is targeted at distributing 50% of Terra Classic (LUNC) transaction fees to the community pool, in which 35% will be burned, 10% airdropped to developers, and 5% for Terra Classic development. The implementation of this proposal will not be on exchanges because the transaction fees can only be deducted from the Terra native chain.
The response of the community members and their votes show that the majority support the LUNC revival plans. However, FatMan thinks that the community members who want to revive LUNC are obviously zealous, but things may not end up as planned.
FatMan Thinks LUNC Burn Proposals and Plans Will Not Work
FatMan, a member of Terra Research Forum, who has been outspoken about the happenings within the Terra community since the crash of LUNA, has recently stated that the LUNC burn plans won’t be able to push its price up to $0.01 because the on-chain volume of the token has been killed via the creation of LUNA 2.0, which would make major exchanges to distance themselves from it.
FatMan tweeted, “I don’t know who needs to hear this, but some LUNC buyers unironically think like this, so – facts: – LUNC will never hit $0.01 no matter how much you burn – Burning will have very little price impact due to dead on-chain volume – Major exchanges will never participate *braces*.”
I don't know who needs to hear this, but some LUNC buyers unironically think like this, so – facts:
– LUNC will never hit $0.01 no matter how much you burn
– Burning will have very little price impact due to dead on-chain volume
– Major exchanges will never participate
— FatMan (@FatManTerra) June 15, 2022
In the same thread, he wrote, “Let’s reiterate with maths. Assume Binance burns their entire 2.17T (2,170,000M) LUNC wallet, a bigger burn than all of the proposals, bringing the supply down to 4.37T. A $0.01 LUNC will require a $43.7b market cap – 109.25x higher than the current market cap Not possible IMO.
“The people telling you that you can ‘burn’ a coin with no product and push it to a higher all-time high market cap than LUNA at its peak are lying to you. They are feeding you with irresponsible false hope and it does far more harm than good. Be rational about your positions.”
In response to his opinion, a Terra community member, who is a supposed holder of Terra Classic (LUNC), urged other members to steer clear of FatMan’s stand about LUNC burn plans, stating that all he does is to spread FUD.
The user pointed out that “@VegasMorph AND THE 2 TEAMS WORKING HARD TO BRING EVERYTHING BACK. INCLUDING DEVS AND VALIDATORS. @orion_money IS EVEN WORKING WITH THE COMMUNITY.”
In response, FatMan wrote, “It is incredibly irresponsible of you to give false hope to people who have already lost everything. Run the numbers yourself. LUNC has no chance of hitting a $40b market cap. A ghost chain with no product won’t eclipse Solana & Cardano purely thanks to ‘burns’. You need demand.”
It is incredibly irresponsible of you to give false hope to people who have already lost everything. Run the numbers yourself. LUNC has no chance of hitting a $40b market cap. A ghost chain with no product won't eclipse Solana & Cardano purely thanks to 'burns'. You need demand.
— FatMan (@FatManTerra) June 15, 2022
Many other Terra community members also berated FatMan, terming his opinion as a mere distraction and unnecessary FUD.