It is no longer news that the Terra Classic community has been ramping up efforts to initiate a comeback for the LUNC token that experienced a huge setback in May. With the various initiatives being rolled out by the community-powered Terra Classic development team, interest in the embattled crypto project appears to be on the rise.
Edward Kim, a core developer in the Terra Classic community stated in a Medium post that the LUNC ecosystem has moved away from the emergency phase and is now in the burn and rebuild stage.
According to him, Terra Rebels have three major objectives which are to rebuild the algorithmic fungible token (AFT), rebuild the project ecosystem, and rebuild independence. He added that LUNC is now officially deflationary.
Burning of the Terra Classic native token, LUNC has been a top priority for the community. The aim is to reduce the large total supply of the currency from approximately 6.9 trillion to 10 billion LUNC. In line with this, the dev team submitted a governance proposal with the label “Props 4661”. The proposal later got the maximum support from the overall Terra Classic community.
Read Also: Terra Classic Team Officially Releases New LUNC Development Roadmap: Details
The governance proposal 4661 which centered on introducing a 1.2% tax and burning on all on-chain LUNC transactions passed with a 99.88% “yes” vote. Interestingly, several top crypto exchanges like Binance, Bitrue, and Crypto.com have supported and activated the 1.2% LUNC tax burn on deposits, withdrawals, spots, and margin trades.
So far, “Looking back from where we started, we have passed some major milestones including the installation of v22 and the delivery of the 1.2% tax burn,” Edward Kim wrote.
While the Terra Classic (LUNC) chain is gearing up to become a fully independent project, Kim noted that the Terra Classic network has some off-the-chain dependencies on Do Kwon’s TerraForm Labs in the aspect of Light Client Daemon (LCD) and Terra Station Wallet.
He added that independence will come at a cost. So, the team is considering taking a portion of the burn to fund the community pool.
Read Also: Here’s How Kaj Labs Plans to Burn 2.5 Trillion Terra Classic (LUNC) Via Lithosphere’s Gaming Series
“The easiest funding mechanism (just a parameter change) is to take a small portion of the burn to fund the community pool, and already, we are seeing spontaneous discussions around governance to raise funds for the community pool. Preliminary budgets show that even a small 5–10% redirection will be more than sufficient to build our reserves,” he stated.
Becoming an independent blockchain with no ties to TerraForm Labs and CEO Do Kwon has become pressing for the Terra Classic project as third parties and external developers say they will only help if and only if LUNC becomes independent of TerraForm Labs.
It is worth noting that Do Kwon, the creator of the Terra ecosystem is currently battling arrest problems initiated by South Korean authorities and Interpol. In a recent statement, Kwon said the Terra collapse case is highly politicized.
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