To assess the impact of a 1.2% burn rate per transaction on Terra Luna Classic (LUNC), we'll examine the time required to reduce the supply to 10 billion coins and estimate the potential coin price, assuming a tenfold increase in market capitalization.

Current Metrics:

Total Supply: Approximately 6.5 trillion LUNC.

Circulating Supply: Approximately 5.5 trillion LUNC.

Current Price: $0.000109 per LUNC.

Market Capitalization: Approximately $600 million.

Average Daily Trading Volume: Approximately $50 million.

Burn Rate Analysis:

With a 1.2% burn rate applied to each transaction, the daily burn can be estimated as:

Daily Burn: 1.2% of $50 million = $600,000 worth of LUNC.

At the current price of $0.000109 per LUNC, this equates to:

LUNC Burned Daily: $600,000 / $0.000109 ≈ 5.5 billion LUNC.

To reduce the supply from 6.5 trillion to 10 billion LUNC, approximately 6.49 trillion LUNC need to be burned.

Estimated Time to Burn: 6.49 trillion LUNC / 5.5 billion LUNC per day ≈ 1,180 days, or about 3.2 years.

Price Projection with Increased Market Capitalization:

Assuming the market capitalization increases tenfold to $6 billion and the supply decreases to 10 billion LUNC:

Projected Price per LUNC: $6 billion / 10 billion LUNC = $0.60 per LUNC.

Market Sentiment Considerations:

Demand Dynamics: A significant reduction in supply could increase scarcity, potentially driving up demand and price.

Investor Behavior: Positive sentiment from effective burn mechanisms may attract more investors, further boosting demand.

Regulatory Environment: Favorable regulations could enhance market confidence, while adverse policies might hinder growth.

Conclusion:

Implementing a 1.2% burn rate per transaction could potentially reduce the LUNC supply to 10 billion coins over approximately 3.2 years. Coupled with a tenfold increase in market capitalization, the price per LUNC could rise to around $0.60. However, these projections are subject to market volatility, changes in trading volume, and evolving market sentiments.

Note: This analysis is based on current data and assumptions. Actual outcomes may vary due to market dynamics and unforeseen factors.

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