The rise in Terra Classic (LUNC) popularity is becoming the scenario of a stone rejected by the builders, which later transformed into a precious cornerstone. Terraform Labs and Do Kwon abandoned LUNC and its blockchain, but the determined people that believe in it have started to turn things around for the rejected cryptocurrency.
Demand and Price Favoring Terra Classic (LUNC)
In recent weeks, Terra Classic (LUNC) has been enjoying an increase in popularity, resulting in a massive rise in demand and price.
At the time of filing this report, LUNC is trading at $0.0004022, with a relatively 42% price upsurge in the last 24 hours.
A recent report from a Terra Classic community member also affirms the notable increase in demand for LUNC.
According to the LUNC enthusiast identified on Twitter as LUNCDAO, a lot of people are currently buying the digital asset. He said the increase in buying pressure has made many crypto exchanges, including KuCoin, hit their maximum limit.
LUNCDAO tweeted, “So many people are buying LUNC that several exchanges including Kucoin hit their maximum limit. Madness. LUNC is sold out, everyone wants it.”
— 🔥🙏 𝕃𝕌ℕℂ 𝔻𝔸𝕆 🙏🔥 (@LUNCDAO) September 5, 2022
1.2% Tax/Burn of Terra Classic (LUNC) Is Coming
As the price increases daily, the excited community keeps gaining confidence in LUNC reaching $0.01 before the end of the year.
Their confidence is based on something tangible. The 1.2% tax/burn of LUNC that is set to start this month promises to burn LUNC tokens steadily, which would bring about a sporadic rise in value.
It can be recalled that a few days after the new token was launched, the determination of those who believed in the abandoned chain gave birth to a new proposal that suggested a frank LUNC burning mechanism.
Going by the content of the proposal, a 1.2% tax/burn will be implemented on all LUNC transactions (buys and sells). This implies that 1.2% of tokens bought or sold will be burned, which will drastically and continuously reduce the LUNC supply. This is also expected to ignite a significant increase in demand.
In the proposal, it’s also stated that the burning mechanism will be stopped once the LUNC Supply reaches 10 billion tokens. It’s believed that at this level, LUNC will be scarce enough to fight for recovery.
Although the digital asset is still very far from where it was trading before the historic crash, a massive and continuous burn could boost its recovery process.