The Terra Luna Classic community has taken a significant step by initiating the burn of 12 billion LUNC and 68 million USTC tokens. This move aims to revive the value of these cryptocurrencies and potentially drive their price up to $1. The initiative includes contracts with the Lido DAO reward provider, making it part of a broader effort to bolster the price stability and growth of LUNC and USTC.
How Did the Community Burn 12 Billion LUNC?
In an unprecedented move, the Terra Luna Classic community has permanently removed 12 billion LUNC and 68 million USTC from circulation, marking it the second-largest LUNC burn recorded. This substantial reduction in token supply is executed through Anchor bLuna rewards and Lido rewards dispatcher contracts. The data reflecting these changes has also been updated on platforms like CoinMarketCap and CoinGecko.
The Terra Classic Foundation, via an announcement on its X account, confirmed that since Lido DAO agreed to a proposal in June 2022 to make all Lido contracts on Terra Classic unalterable, these funds had been locked. Now, the community will vote on the burn of these funds, which could significantly influence LUNC’s future trajectory.
What Are The Implications for LUNC’s Price?
The price of LUNC has seen a slight dip, dropping over 1% in the last 24 hours to $0.00008072. The token’s trading volume has also decreased by 36% to $13.4 million. Despite these short-term fluctuations, token burns are anticipated to play a crucial role in stabilizing and potentially increasing LUNC’s price. Support from major entities like Binance and the implementation of the Tax2Gas application in July could propel LUNC’s price beyond $0.0001.
Key Takeaways
The Terra Luna Classic community’s burning initiative offers several key insights:
- 12 billion LUNC and 68 million USTC tokens have been permanently removed from circulation.
- The initiative includes locked funds from Lido contracts that became unalterable in June 2022.
- Token burns have a direct impact on supply and can potentially stabilize and increase token value.
- Upcoming implementations like the Tax2Gas application could further boost LUNC’s price.
The Terra Luna Classic community’s actions mark a pivotal moment in their efforts to restore and enhance the value of LUNC and USTC. As these tokens are removed from circulation, the community remains optimistic about the future price movements and overall market position of these cryptocurrencies.