Terra Classic Community Witnesses a Massive Burn of 1.1 Billion $LUNC in Just One Week
In an extraordinary move, the Terra Classic ($LUNC) community has managed to burn more than 1.1 billion tokens in a week, amounting to over $100,000. This significant reduction has brought the total supply of the cryptocurrency down to 6.812,67 trillion, as the community strives to boost the token’s value to $0.1.
Renowned cryptocurrency investor AlexCryptoBull shared this update on X, a microblogging platform formerly known as Twitter. Alongside the burns, the community also staked an impressive 7.1 billion LUNC tokens.
AlexCryptoBull tweeted, “$LUNC is unstoppable with burning and staking! 🔥🚀 We burned 1 billion $LUNC in a single week and staked a whopping 7.1 billion $LUNC! #USTC #LuncBurn #LUNC #TERRA #LUNCARMY #LUNCcommunity #terraport #TerraClassic #terraport.”
Token burns are commonly employed by cryptocurrency communities to reduce the circulating supply of an asset. By removing tokens from circulation, the aim is to boost the token’s value through increased demand and reduced supply. These burns occur by sending funds to dead wallets that are not controlled by anyone, effectively removing the tokens from circulation.
The LUNC burn initiative has gained support from major industry players, including Binance, which has celebrated numerous transactions removing over 1 billion LUNC tokens from circulation.
Terra Classic’s tokenomics employ an automatic mechanism where tokens are sent to a dead address with each transaction. The number of tokens sent to these wallets is proportional to the current circulation, ensuring a consistent reduction in the total token supply. Theoretically, this scarcity should increase the token’s value.
It’s important to note that the original Terra ecosystem faced a collapse last year and rebranded to Terra Classic, while a new, forked blockchain carried the Terra brand. When the Terra ecosystem collapsed, the circulating supply skyrocketed from 340 million tokens to 6.9 trillion. To combat inflation, $LUNC supporters introduced a 1.2% tax burn on all network transactions.
The Terra Classic community has been actively working towards increased adoption and even launched a petition for Coinbase, a popular cryptocurrency exchange, to list $LUNC. In recent months, the community-driven projects, including Terra Casino, Cremation Coin, and DFLunc, have contributed to the growing trend of LUNC token burns.
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