New Terra Luna Classic (LUNC) Burning Proposal Gets 80% Votes In Favor, Will It Be Implemented?
A LUNC investor has fielded a proposal to burn tokens and cause a sharp spike in price. For some time now, the Terra community has complained that Do Kwon and Terraform Labs have left LUNC and UST. A previous demand by the community for TFL to implement a LUNA burning mechanism was rejected, and Do Kwon and his team instead elected to create Terra 2.0.
Currently, another proposal by a LUNC investor is causing ripples within the community and the crypto market. The proposal suggests a straightforward LUNC burning mechanism that will lead to a decrease in supply and a price increase.
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The LUNC Burning Mechanism
As stated by the proposal, a 1.2% tax/burn will be implemented on all LUNC transactions – both buy and sell. Every time a transaction is initiated, 1.2% of the tokens involved will be burned. This will create a situation where LUNC tokens will continuously decrease in the market. A reduction in supply means an increase in demand and that translates into an increase in price.
Although, this burning mechanism will be stopped once the overall supply of LUNC tokens reaches 10 billion LUNC. After that, the supply will remain steady and will not be touched forthwith.
The proposal states:
“A Tax Burn mechanism is to be implemented on LUNC to reduce the Total Supply. Implement a Tax + Burn mechanism on each buy-sell transaction: 1.2% burn tax This mechanism should be true until the total supply = 10 billion LUNC, after that, this mechanism is disabled and the total supply can never be changed.”
Terra Team To Support It?
The proposal appeals to Terra to support the mechanism and make official announcements of the same on all social platforms.
Exchanges will also be needed to support the burning. Terra will share the official burning address on its social media outlets. This will work to stop the scams where people have been given false burning addresses and ended up sending their tokens to fraudsters.
85% Support Proposal
However, in a recent update, the community has passed the Tax or Burn 1.2% proposal for TerraClassic, LUNC. As stated by the proposal, for every buys/sells transaction, 1.2% of LUNC coins will be burnt until the supply reaches the 10 billion mark.
Voting on the proposal is currently in progress, and close to 85% of the voters support the motion. These have over 133 million LUNA. Around 14% have abstained, while a measly 0.4% have voted NO with the vote.
These have a total of 667,447 LUNA, in this view, the proposal is bound to pass. It’s yet to be seen whether Do Kwon, TFL, and exchanges will support LUNC burning.
LUNC is already reaping from the buzz created by the proposal. The coin is up 18% on the daily, and still going up. The price is now at $0.000073. The trading volume has also gone up by 107% in 24 hours to reach $349.6 million.
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Terra Classic Holders Spikes 500%
CoinMarketCap statistics indicate that Terra Classic is the second most-searched cryptocurrency on the site as of June 7th out of all the cryptocurrencies after LUNC was the most digital asset earlier on June 3rd.
More also, interest among investors is highlighted by the overall number of the unique addresses that hold assets in the network in the last month; on May 9th, there were 1,642 holders compared with 10,266 on June 5, reflecting an increase of 525.21% in just under a month.
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