TerraCVita, a group of developers working on a decentralized finance (DeFi) project that is built on Terra Classic layer 2, recently disclosed how the DEX will contribute to the LUNC burn expedition.
Per a Monday update, TerraCVita released the Terraport Finance whitepaper which contained critical information about the project and the road map. Notably, Terraport is an autonomous and decentralized finance (DeFi) platform built on Terra Classic layer 2 through smart contracts.
In stating why the Terraport DEX was birthed, the team which is aiming to stabilize the Terra Classic ecosystem by providing infrastructure and endpoints noted that utilities are needed for LUNC to grow and attract new investors and daily users.
Considering that building the ecosystem and reducing the native token supply are the core missions of the Terra Classic community, Terraport is developed to serve as a LUNC burn furnace, as earlier stated by Rex Harrison, a top TCV member.
Fantastic to release the Terraport White Paper, a new dawn indeed, the rebirth of utility on #TerraClassic https://t.co/LGSA2zOHn1
— TerraCVita (@TerracVita) January 16, 2023
Part of the whitepaper read;
“Terraport is not just a trading platform but offers other functionality, including Investment, Entertainment and a Launchpad.
“Being empathic to the community Terraport is designed to take into account both the build and burn narratives as a carefully designed platform to satisfy both. Terraport is built to burn, both $TERRA and also $LUNC, regardless of whether the actually burn tax is in place or not.”
According to TerraCVita, one of the benefits of Terraport to the Terra Classic project is contributing to the increase in the assets on-chain volume taxes. In turn, increased on-chain volume will contribute to the LUNC community pool and the current burn tax.
Notably, 27% of Terraport Treasury will be used to buyback and burn LUNC. In stating categorically how much LUNC will be burned daily and weekly, TerraCVita wrote;
“27% of all funds going to the treasury burns $LUNC, and 22% burns $TERRA, the rest goes to the functioning and features of Terraport. The more volume that goes through Terraport the more $LUNC is burned regardless of pairs traded. It is reasonable to expect that with sufficient volume billions of $LUNC can be burned. A few million dollars swapped will burn 10’s of millions of $LUNC per day.”
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