Terra Classic Community Burns Over 1.1 Billion Tokens
The Terra Classic ($LUNC) community has recently burned more than 1.1 billion tokens, valued at over $100,000, bringing the total supply of the cryptocurrency down to 6.812,67 trillion amid renewed efforts to help its price reach $0.1 per token.
Industry Players Show Support for LUNC Burn
Tokens burns are used by some cryptocurrency communities as a way to reduce an asset’s circulating supply, potentially helping their prices rise if demand is maintained or grows, while supply is reduced through these events. Token burns occur whenever funds are sent to so-called dead wallets – wallets that no one controls – effectively removing them from circulation.
Tokenomics Driving the LUNC Burn
Terra Classic’s tokenomics employ a mechanism that automatically sends tokens to a dead address every time a transaction is made. The number of tokens sent to these wallets is proportional to the current circulation, guaranteeing a perpetual dwindling of the total token supply, and hypothetically inflating their value as scarcity increases.
Combatting Inflation with Tax Burn
It’s worth noting that the original Terra ecosystem collapsed last year and later rebranded to Terra Classic, while a new, forked blockchain took the Terra brand with it. When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2% tax burn on all transactions conducted on the network.
Community-Led Projects Fuel LUNC Token Burns
The Terra Classic community, has been battling for increased adoption and even created a petition to get listed on cryptocurrency exchange Coinbase. Over the last few months, LUNC token burns have been growing through several community-led projects, including Terra Casino, Cremation Coin, and DFLunc.
Hot Take: Terra Classic Focuses on Reducing Token Supply to Increase Value
The Terra Classic ($LUNC) community’s efforts to reduce the cryptocurrency’s circulating supply through regular token burns and a tax on transactions are aimed at increasing the cryptocurrency’s value, making it more attractive to potential investors. As the community continues its initiatives, the long-term impact on the value of $LUNC remains to be seen.
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