1.2% tax burn of LUNC has been officially activated on the Terra Classic network, bringing the determined community to the desired starting point in their mission to drastically reduce LUNC’s circulating supply.
According to data from StakeBin, a LUNC validator, in just a few hours after the burn proposal became effective, over 15 million LUNC tokens have been permanently taken out of circulation.
Read Also: Terra Classic (LUNC) 1.2% Tax Burn Gains Support on Crypto.Com Exchange
Purpose of the Terra Classic (LUNC) Burn Parameter
Since the LUNC burn parameter became effective, there is a particular question that the concerned community members have been asking themselves. How much Terra Classic (LUNC) can be burned per week, per month, and per year?
It should be noted that the already implemented burn proposal is targeted at burning a whopping amount of LUNC tokens in circulation until it drops to 10 billion tokens. It’s also worth mentioning that the total circulating supply of LUNC currently sits at around 6.9 trillion tokens.
In order to meet this target with 1.2% tax, the Terra Classic network needs to maintain its high transaction volume on a daily basis, especially now that its price is still very low. Even if LUNC maintains its current high volumes, it could still take about 10 years to meet the target. So, the community members should know that this is a long-term mission and patience is vital going forward.
In an analysis shared by LUNC Burn, a Twitter handle that tracks LUNC burn activity, using the on-chain volume for the last two weeks, there is a possibility to see more than 700 billion tokens burned in a year.
Using the last two week’s volume, which was 1.17 trillion tokens, LUNC Burn stated that a 1.2% burn tax could help destroy 14 billion LUNC per week, 60 billion per month, and 720 billion per year.
LUNC Burn wrote, “Here’s an example of volume on-chain determining the results of the 1.2% burn, this is the last week volume below and the next post below it is with the last 2 weeks volume Volume: 1.17 Trillion 1.2% burn tax 14B per week 60B per month 720B per year.”
Read Also: MEXC Exchange Successfully Destroyed 466 Million LUNC Tokens During Burn Event: Details
Using the volume from the previous week, which was 8.33 trillion tokens, LUNC Burn stated that a 1.2% burn tax could help burn 99.96 billion LUNC every two weeks, 199.92 LUNC every month, and over 2.3 trillion LUNC every year.
2/2
The last 2 weeks volume is 8.33t1.2% burn tax
99.96b per 2weeks
199.92b per month (4 week month)
2.39t per yearThe on-chain volume will be vital and will change by the day, the higher volume = more burned,
less volume = less burned #lunc #lunaclassic #LUNCcommunity pic.twitter.com/g5KIjuz06d— LUNC Burn (@LunaBurn_13) September 20, 2022
We should also keep in mind that volume is the major determinant of the amount to be burned, and prices going forward will determine the total volume. So, this makes it difficult to predict what may happen from today. However, nothing is impossible with the power of a determined community.
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