The Terra Classic (LUNC) community is banding behind the original LUNC asset with continuing efforts to incentivize users and exchanges to burn the token to reduce the coin supply. #LUNC is trending on Twitter this Saturday, with over 12k Tweets and counting. It seems Terra Classic won the community’s support, as its market cap is almost triple that of LUNA 2.0, which has the help of the “official” Terra Luna channels.
LUNC vs. LUNA 2.0
While Terra 2.0 (LUNA) is the official new digital asset, it’s clear the community has chosen the classic version of the token (LUNC). While LUNA 2.0’s market capitalization is at $233 million with a 24-hour trading volume of $48 million, LUNC boasts a market cap of $646 million with a 24-hour trading volume of almost double that of LUNA, at $74.5 million at the time of writing.
Unfortunately, LUNC and LUNA have underperformed this week as Ethereum and Bitcoin saw substantial price growth. However, despite the underwhelming price action, the Terra community continues to support the project.
LUNC Proposal 3568 & 4095
One of the primary aspects the Terra Classic community focuses on is proposal 3568, which would implement a 1.2% burn tax on every transaction for Terra Classic. This would be an effective way to pave the road to a slow but steady reduction in Terra Classic’s token supply, pushing the individual Terra Classic (LUNC) token price higher.
Moreover, a 1.2% transaction tax would incentivize users and trading bots from making unnecessary trades and incentivize long-term holders and supporters of the project.
According to Terra Classic’s official forums, the proposal passed the full internal code review by the Terra classic team members. It’s currently pending a full independent code review requested from current classic validators. It would proceed to the following stages of being integrated into the Terra Classic mainnet network if passed.
In addition, another part of the Terra Classic communities’ latest efforts is to re-enable delegation and staking in proposal 4095. This would first open delegation to existing validators for sixty days to mitigate any potential attack on the network, followed by opening up staking for additional validators after the initial period.
Revival Efforts for LUNC Continue
Despite TFL not officially supporting Terra Classic, the LUNC community remains dedicated to reviving the original digital asset. According to one of the leading Terra Classic community members on Twitter, @LUNCDAO, current plans for Terra Classic include:
- Re-enabling new staking + new validators
- Implementing the 1.2% burn tax on-chain, which then makes it much more likely to be implemented on CEXs (Centralized Exchanges).
- Anything else that fixes the fundamentals [of LUNC], making it attractive to build on + use $LUNC.
In a series of Tweets published today, the @LUNCDAO account emphasizes that burning LUNC tokens isn’t done for profit-generating purposes, as they’ve donated over $26k of their profits to help the LUNC community so far.
Terra Classic (LUNC) is trading at $0.00009842 at the time of writing, down 3% in the past 24 hours. While the performance of LUNC is underwhelming, the robust community support for the token could mean a significant bull run could be coming when traders least expect it. We recommend keeping a close eye on the Terra Classic community as the digital asset could show substantial price growth in the next few weeks.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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