In a significant development, the Terra Classic community has proposed a large-scale burn of its cryptocurrency, LUNC, and USTC, aimed at revitalizing the token’s value and stabilizing its price.
The plan involves removing 12 billion LUNC and 68 million USTC from circulation, which would substantially reduce the market supply and potentially impact the tokens’ value.
Read Also: Terra Classic Votes On a New Step Proposal For LUNC Revival and Security
Background and Context
This proposal comes on the heels of a recent burn that eliminated 6.5 billion LUNC, marking one of the largest removals from circulation to date. The upcoming burn targets tokens held in contracts associated with Lido DAO rewards dispatcher and Anchor bLuna rewards, which have been locked since June 22, 2022. Lido DAO made these contracts non-upgradable and invalidated ownership, leading to the lockup.
The Burn Process and Next Steps
The process of removing these tokens through a burn will be put to a community vote soon. If approved, the burn will take a significant volume of LUNC and USTC out of the market supply, potentially boosting the token’s value.
Additionally, developers within the Terra Luna Classic ecosystem plan further gradual burns of LUNC and USTC, including removing 93 million LUNC and 87 million USTC from the Terra Shuttle Bridge (BSC) contract. This burning mechanism, if implemented, could lead to increased stability in the Terra Luna Classic project.
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Read Also: Terra Classic (LUNC) Price Spikes Following Settlement Announcement
Impact on Investors and Market
The proposed burn has significant implications for investors and the market. By reducing the supply of LUNC and USTC, the tokens’ value may increase, potentially benefiting investors who hold them. However, the burn may also lead to market volatility, and investors should exercise caution when making investment decisions.
Terra Luna Classic’s bold move to burn a substantial amount of its cryptocurrency demonstrates the community’s commitment to revitalizing the token’s value and stabilizing its price.
The proposed burn has significant implications for investors and the market, and it will be interesting to see how the community vote unfolds and the impact the burn will have on the tokens’ value. In the meantime, data from CoinMarketCap reveals that LUNC and USTC have experienced a 1.13% and 1.59% price decline in the last 24 hours, respectively.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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