The Terra Luna Classic community has received broad support from market participants with its USTC burn proposal. The initiative has generated significant interest among community members following TerraForm Labs’ decision to wind down its operations and burn its remaining assets.
The new burn proposal aims to burn a total of 46.55 million USTC via contract migration, focusing on wallets associated with Mirror Protocol. While similar burns in 2023 have attracted attention, investors outside the community appear to have shown little interest in the current news, as it has not had a significant impact on the price for a long time.
Following the announcement, the LUNC price rose by nearly 3% to $0.00008976, and trading volume increased by 17% to $26 million. The USTC price rose by over 2% to $0.01847, but trading volume decreased by 4% to $7.01 million.
The burn offer plans to burn 46.55 million USTC, with priority given to wallets associated with Mirror Protocol. The previous burn attempt failed due to insufficient contract balance.
The Terra ecosystem has undergone a significant transformation with Terraform Labs officially declaring bankruptcy. As of September 30, the company will be shutting down many applications and services. This will allow LUNC to operate independently of the Do Kwon team, while the future of Terra-based tokens remains uncertain due to the lack of interest from new investors.
The community aims to increase the stability of the ecosystem and reduce the circulating supply with the USTC burn proposal. This burn is considered a strategic step in terms of removing passive contracts and complying with legal regulations.
