A few hours following when the LUNC 1.2% tax burn Proposal went live, a total of 12 million+ LUNC tokens has been burnt as gotten from the data from LUNC validator StakeBin.
There is no doubt that the proposal can reduce the total supply of the LUNC tokens just as previously stated by some analysts.
Analysis Of the LUNC Burn
The Proposal went live today at almost 6:18 UTC after it has been longed-awaited. The proposal is expected to reduce the total supply of 6.9 trillion to a minimal amount of 10 billion.
Per the analyst; Applying a 1.2% tax burn to the last week’s volume of 1.17 trillion, 14 billion LUNC can be burnt every week, 60 billion every month, and 720 billion yearly.
Using the volume of 8.33 trillion LUNC from the week before, 99.96 billion will be burnt every two weeks, 199.92 every month, and over 2.3 trillion every year. All the above analysis will take nothing less than five years to take Terra’s classic total supply to billions. Again the analysis emphasizes that the higher the volume, the greater the burn.
Edward Kim, a co-authored by Terra Classic Core developer, revealed that there are other ways through which the total supply of LUNC can be reduced aside from the current LUNC 1.2% tax burn.
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KIM gave an idea on how to revive the dollar peg of TerraUSD (UST), now TerraClasicUSD (USTC), through a form of debt restructuring funded by the community.
Many Exchanges Already In Support Of The LUNC Tax Burn Proposal
It is worth noting that the various platforms have added support to the tax burn proposal. Almost eleven exchanges have added their support to the tax burn.
A few hours ago, CryptoCom added its support on the LUNC tax Burn making the total support from the platforms 11 with the eToro. Exchanges like Binance, KuCoin, MEXC Global, Lbank, Huobi, Bitrue, Gate.io, CoinInn, Kraken, and CryptoCom have recently supported the proposal and out of these, only Kucoin, MEXC Global, CoinInn, and eToro support burns on LUNC trading.
It is worth noting that MEXC Global concluded its 14-day burn event on the 17th of September, 2022 with over 466 million LUNC burnt.