LUNC and USTC: Why are they rising and what is the reason behind the recent burn?LUNC and USTC are two tokens that belong to the Terra Classic blockchain, a fork of the original Terra blockchain that suffered a major collapse in May 2022. The Terra Classic community has been working hard to revive the value of its tokens and restore the peg of its stablecoin USTC to the US dollar. In this article, we will explore why LUNC and USTC are rising in price and what is the reason behind the recent burn of these tokens.LUNC is the native token of Terra Classic, and it has two main functions: to absorb the price deviation of USTC and to participate in the governance of the network. USTC is the algorithmic stablecoin of Terra Classic, and it is supposed to maintain a 1:1 peg to the US dollar by minting and burning USTC tokens to balance the supply and demand. However, in May 2022, USTC lost its peg and collapsed, triggering a hyperinflationary spiral that reduced the value of LUNC by 99%. This event was dubbed as the “decoupling” and it wiped out $41 billion from the crypto ecosystem.Since then, the Terra Classic community has been trying to recover from the disaster and restore the value of its tokens. One of the main efforts is to rebind USTC to the US dollar from the code level, consensus level and guidelines, with the ultimate goal of repegging USTC to $1. This proposal, known as “Ziggy: Re-Peg UST (Signal)”, was passed by the community in October 2022.The proposal also involved raising the Tobin tax to 100%, which effectively disabled the minting and redeeming of USTC.This was done to prevent further dilution of USTC and to prepare for the repegging process.The repegging process is being led by two developer teams: the Joint L1 Task Force and the RedlinerDrifter-led Quant team. They have decided to proceed with the repegging of USTC to $1, which will indirectly help boost the LUNC price to the community’s target of $1.The repegging process involves several steps, such as resetting the oracle price feed, adjusting the seigniorage pool, and burning the excess USTC supply. The burning of USTC is one of the reasons why USTC price has been rising in the past few days, as it reduces the supply and increases the demand of the stablecoin. The burning of USTC also benefits LUNC holders, as it increases the value of their collateral and their governance power.Another reason why LUNC and USTC are rising in price is the positive sentiment and confidence of the Terra Classic community. The community has shown strong support and enthusiasm for the revival of the Terra Classic ecosystem, and has been actively participating in the governance and development of the network. The community has also been celebrating the passing of several proposals that aim to improve the functionality and security of the network, such as the v2.3.0 upgrade that incorporates the dynamic validator commission module. The community has also been looking forward to the launch of new projects and applications on the Terra Classic blockchain, such as the Terra Classic Swap, a decentralized exchange that will allow users to trade LUNC and USTC with other cryptocurrencies.Last lunc burn data yesterdayIn conclusion, LUNC and USTC are rising in price because of the ongoing efforts to repeg USTC to $1, the burning of USTC supply, and the positive sentiment and confidence of the Terra Classic community. The Terra Classic ecosystem is showing signs of recovery and revival, and it is expected to regain its former glory and value in the near future.