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That Classic Terra Community is preparing for the supply shock that LUNC coin may face soon. This is based on a court-mandated settlement Terraform Labs to burn the tokens they have.
Court Orders Burning of LUNC As Part Of Terraform Labs Settlement
Terraform Labs is set to perform a LUNC burn as part of it $4.5 billion settlement with the US Securities and Exchange Commission (SEC). This burn must be done before the end of this month, or Terraform Labs will have to pay a fine. According to the SEC, crypto companies must burn or destroy the private keys held by wallets holding these LUNC coins.
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Based on this time limit, then LUNC is on fire might happen this week. Leading up to the fire, members of the Terra Classic community had experienced it as well notified to withdraw their assets locked on the Shuttle Bridge, as that bridge will also be closed during the LUNC burn and will never be opened again.
Terraform Lab’s imminent LUNC burn-down will undoubtedly have a positive impact on the coin, as it could provide much-needed bullish momentum and lead to a significant price spike. Moreover, this is in line with Terra Classic Community mission to remove as many coins as possible from circulation to revive LUNC.
They believe this deflationary mechanism could help send the coin back to its current all-time high (ATH) of $119. LUNC Metric Data shows that 135.54 billion coins have been burned since this token burn began on May 13, 2022. Meanwhile, 303.6 million coins have been burned in the last seven days. However, the community still has a lot of work to do considering that LUNC still has a circulating supply of 6.76 trillion.
Other Steps Taken By The Terra Classic Community
In addition to LUNC burns, the Terra Classic community also has them take another step to help revive the coin and return it to its former glory. This includes developing proposals to improve the LUNC ecosystem and encourage coin adoption.
The most latest proposal comes from OrbitLabs to remove the forked mainline module from the Terra Classic blockchain. The proposal states that this will help improve maintenance, reduce technical debt, and align with the broader Cosmos ecosystem.
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OrbitLabs further highlights the current situation in Remote ecosystem to show why this proposal is necessary. According to them, the Terra Classic codebase uses several forked versions of the Cosmos module to accommodate its unique features. This causes the code base to deviate from upstream modules and increases maintenance costs.
Therefore, this new approach will help ensure that the Terra Classic blockchain has the latest securities and features from the Cosmos development team. This will help reduce maintenance costs and time greatly.
At the time of writing, LUNC was trading around $0.0000925, down more than 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, a chart from Tradingview.com
