Some Terra investors still resolutely believe that Terra Classic (LUNC) can be revived through a token burn mechanism, the same mechanism earlier introduced but turned down by Do Kwon, the founder and CEO of Terraform Labs. Recall that he chose to rather propose the creation of a new chain.
The new burn proposal introduced by a LUNC investor is starting to gain tremendous attention and support within the Terra community since it was what the majority wanted before it was vetoed by Kwon and his team for their personal interest.
Read Also: Number of Terra Classic Holders Surges 525% in a Month As Investors’ Interest in LUNC Grows
The proposal suggests a frank LUNC burning mechanism that is capable of initiating a notable decrease in the token’s circulating supply, which would in turn boost its value.
The Proposed LUNC Burning Mechanism
Going by the proposal’s content, 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.
The proposal also states that the burning mechanism will stop once the LUNC supply reaches 10 billion tokens.
It also calls on the Terra team for support and to make official announcements regarding the burn mechanism on all social platforms. Exchanges are also needed to make LUNC burn successful.
The LUNC burn proposal reads in part:
“A Tax Burn mechanism is to be implemented on LUNC to reduce the Total Supply. Implement a Tax + Burn mechanism on each buy-sell transaction: 1.2% burn tax. This mechanism should be true until the total supply = 10 billion LUNC, after that, this mechanism is disabled and the total supply can never be changed.
“This is to be implemented in all transactions and to be suggested officially by the terra team on all social media that all the exchanges should do the same thing until the condition is met. Another thing is for the official terra team to share on all social media the official burning address. This will help stop the scams.”
LUNC Burn Proposal Gains Over 80% Support
It’s worth noting that the proposal has over 80% support at the time of filing this report. This indicates that the proposal will be passed eventually. However, whether Do Kwon and Terraform Labs would support this move cannot be ascertained.
Currently, the Terra Classic (LUNC) is reacting positively to the proposal in the market. At the time of press, LUNC is trading at $0.00006667 with a relatively 8% price uptrend in the last 24 hours, according to CoinMarketCap.
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