The Terra Classic community is still gearing up to revitalize the once-broken blockchain as well as boost the price of LUNC. This has led to the implementation of several strategic network upgrades and ecosystem expansion projects.
As notified by the Terra Validators Twitter handle, the latest upgrade on the Terra Classic network was executed in the early hours of today. The network upgrade comes shortly after Proposal 11515 passed community governance voting.
The proposal dubbed “New Economic Policy for Terra Classic,” was submitted by dfunk, and it upholds that surplus burns would enhance the growth of LUNC, attracting more investors to the project.
— Terra Validators (@TerraValidators) May 24, 2023
Notably, the recently completed Terra Classic network upgrade has increased the burn tax on all LUNC and USTC on-chain transactions from the previous 0.2% to 0.5%. It is expected that this will lead to more quantity of LUNC being burned. It bears noting that several top exchanges including Binance and KuCoin have supported the LUNC burn tax increase.
Can this boost LUNC’s price?
While the effect of this development is yet to be seen on LUNC price, the community believes it will have a positive impact in the long run as more exchanges join to increase the levy per every LUNC and USTC transaction. Consequently, the LUNC burn rate is expected to experience a massive surge.
In the past weeks, billions of LUNC were sent to the burn wallet via different transactions. Binance, the largest crypto exchange by 24-hour trading volume, has burned over 31 billion LUNC through its voluntary monthly burns.
With these increasing LUNC burns and staking, the price of LUNC is expected to experience a boost and possibly rally as predicted by experts.