The Terra Luna Classic community is eagerly awaiting a significant burn of USTC and LUNC tokens, following the Chapter 11 bankruptcy proceedings and court order in the SEC case against Terraform Labs (TFL). While the exact amount of tokens to be burned remains uncertain, community members estimate it could exceed 1 billion USTC and 275 billion LUNC.
Terra Luna Classic Validator Predicts Substantial Burn
HappyCattyCrypto, a prominent Terra Luna Classic validator, has conducted research into the potential amount of tokens to be burned as a result of TFL’s bankruptcy. Based on his analysis, the validator believes that over 1 billion USTC and 275 billion LUNC could be burned.
This prediction is further supported by the recent reopening of the shuttle bridge by TFL, which has resulted in over 2.58 billion LUNC being claimed.
HappyCattyCrypto also encouraged the Terra Luna Classic community to migrate the Mirror Protocol and Anchor Protocol contracts to new code via governance, similar to Risk Harbor. The funds associated with these protocols are Columbus-5 native assets, USTC and LUNC.
Court Order Mandates Token Burn
The court judgment in the SEC case has mandated that all Terra Luna Classic assets be burned. TFL will no longer have the ability to interact with the Columbus-5 or Phoenix-1 chains after October 31, making any token burn or transfer difficult post this date.
Also Read: Terra Classic’s Tokenomics Nightmare: Can LUNC Ever Reach $0.01?
Estimated Burn Amounts from Mirror and Anchor Protocols
According to a Commonwealth post, the total LUNC burn from Mirror Protocol could amount to 480,404,166 tokens. Additionally, 46,556,271 USTC could be burned from Mirror Protocol, and 729,976,293 USTC from Anchor Protocol.
Amidst the positive sentiment surrounding the potential token burn, Terra Luna Classic ecosystem tokens LUNC and USTC have experienced a rebound. LUNC price has climbed 5% in the past 24 hours, while USTC price has seen a 10% increase in the past week.
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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