The Terra Classic community is on the brink of experiencing a significant supply shock due to impending actions involving the LUNC coin. This situation arises from a recent court settlement that compels Terraform Labs to execute a burn of their LUNC tokens.
Court-Mandated LUNC Burn as Part of Terraform Labs Settlement
As part of a $4.5 billion settlement with the United States Securities and Exchange Commission (SEC), Terraform Labs is tasked with burning a substantial amount of LUNC coins. This burn must be completed by the end of the current month, or the company will face penalties. The SEC has decreed that Terraform Labs must destroy the private keys of wallets containing these LUNC coins.
Deadline for LUNC Burn
With the deadline fast approaching, the LUNC burn is expected to occur imminently. In preparation, the Terra Classic community has been advised to withdraw any assets currently locked on the Shuttle Bridge, as this bridge will be permanently closed during the burn process.
Potential Impact on LUNC’s Market Dynamics
The imminent burn is poised to inject positive momentum into the LUNC market. Such deflationary tactics are aligned with the community’s broader goal to slash the number of circulating coins, thereby potentially catalyzing a price surge. This strategy is aimed at pushing LUNC back to its previous all-time high (ATH) of $119.
Current LUNC Metrics
As of recent reports, approximately 135.54 billion LUNC coins have been burned since May 13, 2022. In the past week alone, about 303.6 million coins have been removed from circulation. However, with a remaining circulating supply of 6.76 trillion coins, there remains a significant journey ahead for the Terra Classic community.
Additional Initiatives by the Terra Classic Community
Beyond the token burns, the Terra Classic community is actively pursuing various strategies to enhance the coin’s ecosystem and bolster adoption. These initiatives are crucial for reviving LUNC and restoring its former stature.
Recent Proposals for Ecosystem Improvement
One of the latest proposals comes from OrbitLabs, which aims to eliminate forked mainline modules from the Terra Classic blockchain. According to OrbitLabs, this move is expected to enhance maintainability, reduce technical debt, and align the Terra Classic ecosystem with the broader Cosmos network.
Rationale Behind the Proposal
OrbitLabs has highlighted the divergence of the Terra Classic codebase due to its reliance on several forked versions of Cosmos modules. This divergence has increased maintenance costs and time. The proposal seeks to synchronize the blockchain with the latest security updates and features from the Cosmos development team, thereby optimizing both cost and efficiency.
Currently, LUNC is valued at approximately $0.0000925, experiencing a decline of over 2% in the past 24 hours, according to CoinMarketCap figures.
