#LUNC #USTC
Why ? Burning USTC therefore affects the price of LUNC in the future.
Burning is caused by humans.
In 2021-2022, Ryoshi transferred 50% of the $SHIB supply to Vitalik Buterin, and Vitalik Buterin decided to burn 40% of the total #SHIB supply received from Ryoshi that was manmade. This was not a normal trading mechanism in the market, resulting in SHIB growing 44,000,000% and changing the lives of many previously holding $SHIB, becoming rich in the blink of an eye. Win the lottery jackpot
For #LUNC
Previously it was like SHIB which many people often said. The supply is too abundant, just like SHIB. Before Vitalik Buterin decided to burn 40% of SHIB, there were people who commented that the supply of SHIB is like someone using a glass to scoop water from the sea. In the end, when there was a burning incident by Vitalik Buterin, it was shown that Anything can happen in the crypto world.
For this reason, on June 21, 2024, in an interview, Terra Labs CEO said that TFL would burn $LUNC $USTC in the possession of TFL and LFG along with burning $LUNA v.2 in the near future. How many months ahead?
When? If considering the timeline according to the judgment, TFL must liquidate its business within 30 days from the date of the judgment. And assets must be transferred to pay off debts in the bankruptcy case by October 31, 2024, that is, just before the start of this year's bull market in 2024 (October - March).
The burning of the LUNC USTC that was in the possession of TFL and LFG was therefore also man-made. Although we know of TFL's wallets from evidence in the SEC & Terra case, it is unknown if there are more than that. But 204 wallets hold 2,355,603,060 USTC, which is 26.90% of the total USTC supply.
One thing that makes LUNC different from other coins is that LUNC is a Coin, not a Token. LUNC has a protocol algorithm to maintain the price of USTC, a Mint and Burn system to maintain a 1 to 1 balance. Currently, the price of both coins follows a market mechanism. They are separate and unrelated, so there is no Mint and Burn to maintain a 1 to 1 balance like a water tank with pipes connecting the two water tanks to balance each other. has been disabled
If 2,355,603,060 USTC were burned, which is 26.90% of the total supply. It will have an effect on the future price of LUNC when the Mint and Burn system occurs, or as we call it, Re-Peg coins, that is, opening the water valve between the two water tanks. When the balance is 1 to 1, the prices of both coins are equal to 1 to 1. If one coin has a higher price, the system will mint that coin and burn the other coin to give a price of 1 to 1. This is what differentiates LUNC from other coins that It depends on the burning of the Dev. or the market mechanism. Therefore, the burning of either LUNC USTC coin will affect the future price of both coins.
Now, the community is beginning to see that accelerating the burning of USTC as much as possible will have an unexpected positive effect on future LUNC prices. We therefore see the community focusing specifically on the issue of burning USTC because it is much easier to burn than LUNC.
From now on, the burning will occur from human hands, that is, TFL, self-burning, binance, monthly burning. And the transaction burning mechanism. For example, recently the #BtcTurk board was attacked and there were approximately 800,000,000,000 LUNC transactions, resulting in 6,666,000,000 LUNC being burned. System burning is an important one.
Reducing the supply as much as possible until ensuring that if the Mint and Burn systems are opened, the price will look good after re-pegging the coins and then starting the DeFi system, which is the original system of USTC. When the DeFi system starts, cash flow will enter the system. The DeFi system is part of Web 3. For this to happen, the oversupply problem of LUNC USTC must be solved first.
When will the repeg happen?
We analyzed from the responses to the conversations of important members of the community that:
1. Waiting for the results of the SEC & Terra case, which at present the case has finally ended.
2. Waiting for the enforcement of the MiCA crypto regulation law. According to Chainalysis, the MiCA law related to stablecoins will come into effect in July 2024, and US law regarding stablecoins, this direction may be at an angle. More positive if the United States gets a president who supports crypto.
But some communities have changed opinions that The outcome of the case has a positive direction for Repeg because TFL will have to burn the key when TFL is no longer involved with the chain. Chains will have more freedom to make decisions. The community has more freedom to make decisions. This direction must be looked at by the reactions of community members who are nodes with high voting power. Have you thought about Repeg yet?
$LUNC