TL;DR
- The Terra Luna Classic (LUNC) ecosystem is revitalizing with the approval of the proposal to burn 46,556,271 USTC, which has increased market interest.
- The USTC burn is linked to the bankruptcy of TerraForm Labs, which must eliminate digital assets before October 30, 2024.
- The LUNC community is implementing the Tax2Gas mechanism, increasing the burn rate from 0.5% to 1.5% per transaction. Additionally, Binance is expected to join the burn process.
The Terra Luna Classic (LUNC) ecosystem has risen from the ashes thanks to an ambitious burn initiative of its stablecoin, Terra Classic USD (USTC).
Recently, the community approved proposal #12138, which involves the burning of 46,556,271 USTC through the Mirror Protocol. This is part of a strategy designed to reduce the oversupply of tokens in circulation and boost the value of LUNC, which has seen an increase in its price as a direct result of these actions.
#USTC BURN PROPOSAL – Passed 👍
46 MILLION $USTC BURNED 🔥#LUNC $LUNC #LunaClassic https://t.co/Dbb03LwKrC pic.twitter.com/16DZfhOiCm
— 🌕 LunaClassicNode.com – LUNC Validator (@LunaClassicNode) October 1, 2024
The USTC burn is framed within the bankruptcy process of TerraForm Labs, the entity behind the creation of LUNC and USTC. The court has ordered TerraForm to eliminate all remaining digital assets before winding down operations, with a deadline set for October 30, 2024, to execute these burns.
In a recent conversation with the community, TerraForm’s CEO, Chris Amani, highlighted the necessity of opting for the burning of tokens instead of the destruction of private keys, a decision that underscores the urgency of the company’s current context.
Upsurge for USTC and Losses for LUNC
The burn proposal has reignited market interest, resulting in a 20.23% increase in the price of USTC over the last week, reaching a value of $0.02189. Despite the rebound, USTC remains far from its initial re-peg target of $1. Meanwhile, LUNC also recorded a slight increase. However, the bearish wave currently facing the crypto market has undermined the achievements made. It currently trades at $0.00008916, reflecting a loss of 4.83%.
The Double Burn Strategy of Terra
To address immediate challenges, the LUNC community is implementing the Tax2Gas mechanism, which will increase the mandatory burn rate from 0.5% to 1.5% per transaction. This approach aims not only to reduce supply but also to stimulate demand, which is essential for the token’s revitalization.
And Here We GO….. #ustcfirst
Key notes for #ustc / #lunc for October:
– TFL burns their holdings
– Terra bridge closing and burnt
– monthly Binance burns (their burning pattern seems to be changing)
– hopefully Tax2Gas Release
– Crypto seasonality and uptober!Keep up to date… pic.twitter.com/Xk5eACoQWO
— Bradley Allen (MSc LLB) (@Bradsallen) October 1, 2024
In parallel, the community also anticipates the monthly LUNC burn from Binance, one of the largest exchanges in the world, which conducts burns at the beginning of each month using the fees generated from the relevant trading pairs. This dual burn strategy, both at the community level and by major platforms, could have a lasting effect on the perception and value of LUNC and USTC.
