The Terra Classic community is taking a bold step towards reviving the project with a proposal to burn a large amount of its tokens, LUNC and USTC. This move aims to revitalize the token’s value and stabilize its price in the cryptocurrency market.
This burning initiative proposes removing a significant 12 billion LUNC and 68 million USTC from circulation. Reducing the overall supply of these tokens could potentially drive their value up. It’s important to note that this proposal comes after a recent successful burn that eliminated 6.5 billion LUNC, marking a significant milestone for the community.
The upcoming burn targets tokens currently locked in contracts associated with Lido DAO rewards dispatcher and Anchor bLuna rewards. These contracts became inaccessible in June 2022 after Lido DAO rendered them non-upgradable and invalidated ownership.
Community Vote and Further Burning Plans
The proposal will be presented to the Terra Classic community for approval through a vote. If the community approves the burn, it will remove a substantial volume of LUNC and USTC from circulation, potentially leading to a price increase for both tokens.
Looking ahead, developers within the Terra Luna Classic ecosystem plan to implement additional burns. These plans include removing 93 million LUNC and 87 million USTC from the Terra Shuttle Bridge (BSC) contract. If implemented, this burning mechanism could significantly contribute to the project’s stability.
Also Read: Terra Classic (LUNC) Faces Uncertainty Amid $123B Token Burn and 28.82% Price Drop
Investor Impact and Market Volatility
This proposed burn has the potential to significantly impact both investors and the wider cryptocurrency market. By reducing the circulating supply of LUNC and USTC, the burn could lead to an increase in their value, benefiting holders of these tokens. However, it’s important to acknowledge that the burn may also cause market volatility. Investors should exercise caution and conduct thorough research before making any investment decisions based on this news.
The Terra Classic community’s initiative to burn a substantial amount of its cryptocurrency showcases their dedication to reviving the token and stabilizing its price. The upcoming community vote and the burn’s impact on the tokens’ value will be interesting developments to follow. While CoinMarketCap data shows a slight price decline for LUNC and USTC in the last 24 hours, the long-term effects of the burn remain to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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