- Upcoming community vote to decide on the proposed burning of tokens currently held in non-upgradable contracts.
- Continuous removal of tokens aims to stabilize LUNC and USTC prices, targeting a re-peg to $1.
The Terra Luna Classic community has put forward a proposal to burn a substantial amount of its cryptocurrency, potentially impacting the market for its tokens, LUNC and USTC. According to recent announcements, the plan involves removing 12 billion LUNC and 68 million USTC from circulation, a move aimed at reviving the token’s value and stabilizing its price back to $1.
This proposed burn would target tokens held in contracts associated with Lido DAO rewards dispatcher, effectively taking a significant volume of LUNC and USTC out of the market supply.
This decision follows a recent action where 7 billion LUNC were eliminated through a burn tax, which accumulated 8.34 billion in total fees on a single day, marking it as one of the largest removals from circulation to date.
The upcoming burn involves tokens from the Anchor bLuna rewards and Lido rewards dispatcher contracts. Details from the Terra Luna Classic Foundation indicate that these funds have been locked since June 22, 2022, following a decision by Lido DAO to make contracts on Terra Classic non-upgradable and to invalidate their ownership.
The process to start the burn will soon go to a community vote, seeking approval to proceed with the removal of these tokens. Additionally, Terra Luna Classic developers are planning further gradual burns of LUNC and USTC from circulation, including removing 93 million LUNC and 87 million USTC from the Terra Shuttle Bridge (BSC) contract.
