The burn rate of Terra Luna Classic (LUNC) tokens has been accelerated by implementing a new solution.
The Eris Protocol, an auto-compounding and liquid staking protocol for LUNC, was recently introduced to burn three times as many Terra Classic tokens at the same price.
Users can stake their LUNC over the Eris Protocol and still move the tokens without waiting for the 21-day unbinding period. Amplified Luna is the name of these liquid Luna Classic tokens (ampLUNC). The Eris Protocol’s auto-compounding feature enables an increase in annual yield for investors.
According to LUNC DAO, a Terra Community validator that burns the Luna Classic tokens using its commission, by collaborating with ERIS Protocol, which was newly started on LUNC, they could burn way more for the same price. Investors can also use this to increase their LUNC as well.
The liquid staking and auto-compounding protocol for LUNC is called the eris protocol. The $ampLUNC liquid staked LUNC on Eris allows you to transfer LUNC around without waiting for a 21-day un-bonding time. ampLUNC’s auto-compounding improves the yield you get each year.
Therefore, if they send LUNC to the burn wallet, it will always have the same amount of LUNC, but if they transfer ampLUNC to the burn wallet, it will continue to burn the yield APY in addition to earning staking rewards. Approximately double the burn at current rates.
1/ THE HOLY DAY OF BURNING IS HERE
You can also use this to multiply your $LUNC
They also contributed 2.5M $LUNC today
— 🔥🙏 𝕃𝕌ℕℂ 𝔻𝔸𝕆 🙏🔥 (@LUNCDAO) September 12, 2022
But hold on, there’s more…
Additionally, they can burn the entire LP after providing liquidity to the LUNC/ampLUNC pool on Astroport.
They are now burning both the APY from pool volume and the ampLUNC’s auto-compounding increasing value. This probably entails using more LUNC this year than the 14.2M LUNC it originally cost.
The Eris Protocol – A Solution to the Terra Ecosystem
The Eris Protocol solution has been added to the list of initiatives launched to help those affected by the collapse of the Terra ecosystem. The best way to make Terra investors whole again is to burn some of the LUNC supply.
A proposal to levy a 1.2% tax burn on all on-chain LUNC transactions was recently approved by investors. On September 20, 2022, the proposal is expected to go into effect, and several exchanges have said they will support it.
The 1.2% tax burn has received the backing of several exchanges, including Binance, Bitrue, Gate.io, Huobi, KuCoin, MEXC Global, etc.
Investors in Terra are hopeful that the ecosystem’s iconic tokens, USTC and LUNC, can be brought back to life via sustained community efforts.