This update comes from the Terra Classic Community. We are anticipating a potential supply shock for the LUNC coin. This is linked to a court ruling mandating that: Terraform Labs must burn the tokens in their possession.
Court mandates burning of LUNC tokens as part of Terraform Labs settlement
Terraform Labs is set to carry out LUNC token burns as part of a $4.5 billion agreement with the U.S. Securities and Exchange Commission (SEC). These token burns must be completed by the end of the month to avoid penalties. Following SEC guidelines, cryptocurrency firms are required to eliminate or destroy the private keys tied to the wallets that hold these LUNC tokens.
Related Books
Given the impending deadline, the LUNC token burn could take place within this week. Before the burn occurs, the Terra Classic community has also noted that the shuttle bridge will remain closed during the LUNC burn, hindering any asset retrieval from the shuttle bridge.
The upcoming token burn by Terraform Labs is undoubtedly a positive step for the coin, bringing much-needed optimism and possibly triggering a notable price increase. Additionally, the Terra Classic Community aims to remove as many coins from circulation as possible to rejuvenate LUNC.
They are optimistic that this deflationary strategy will assist the coin in returning to its all-time high (ATH) of $119. The LUNC metrics indicate that 135.54 billion coins have been incinerated since the burning began on May 13, 2022. In the past week alone, 303.6 million coins have been burnt. However, with a total supply of 6.76 trillion LUNC coins, the community has plenty of work ahead of them.
Additional initiatives by the Terra Classic community
Beyond the LUNC burn, the Terra Classic community is also pursuing other initiatives to support the revival of their coins and relive past successes. This includes proposing enhancements to the LUNC ecosystem and fostering broader adoption of the coin.
One of the latest proposals comes from OrbitLabs, which suggests eliminating forked mainline modules from the Terra Classic blockchain. The aim is to enhance maintainability, reduce technical debts, and foster better coordination within the larger Cosmos ecosystem.
Related Books
OrbitLabs further elaborated on the current state of the LUNC ecosystem to illustrate the necessity of this proposal. They point out that the Terra Classic codebase currently utilizes several forked versions of Cosmos modules tailored to its distinctive features. This divergence has led to increased maintenance costs.
Thus, this fresh approach promises to ensure that the Terra Classic blockchain remains updated with the latest security measures and functionalities provided by the Cosmos development team, significantly lowering maintenance expenses and time.
At the time of writing, LUNC is trading at about $0.0000925, representing a decline of more than 2% in the last 24 hours, according to CoinMarketCap.
Featured image crafted by Dall.E, chart derives from Tradingview.com
