Terra Luna Classic Plans to Burn 1 Billion USTC & 275 Billion LUNC
Terra Luna Classic validator HappyCattyCrypto has revealed plans for a significant burn of tokens from the Terra ecosystem, linked to Terraform Labs’ (TFL) Chapter 11 bankruptcy proceedings.
Key Points:
1. Proposed Burn Amounts:
- The Terra Luna Classic community aims to burn over 1 billion USTC and 275 billion LUNC tokens.
- These tokens are expected to be burned from TFL wallets as part of court orders related to TFL’s Chapter 11 bankruptcy and settlement with the U.S. SEC.
2. Community Actions and Migration Requirements:
- The community is encouraged to migrate Mirror Protocol and Anchor Protocol contracts to new governance code similar to Risk Harbor to maintain operational continuity.
- All funds from Mirror Protocol and Anchor Protocol are tied to the Columbus-5 chain, which will cease interactions with TFL after October 31.
3. Challenges with TFL’s Involvement:
- TFL will end its support for the Columbus-5 and Phoenix-1 chains after October 31, complicating future token burns or transfers.
- Proposal 4818 indicates this will be the final chain upgrade by TFL, which will not back further updates post-October 31.
4. Specific Token Burns Expected:
- Mirror Protocol is set to burn 480,404,166 LUNC and 46,556,271 USTC.
- Anchor Protocol is expected to burn 729,976,293 USTC.
5. Price Impact and Market Response:
- LUNC price has increased by 5%, trading between $0.00007543 and $0.00007906.
- USTC has risen 10% over the past week, trading between $0.01532 and $0.01593, despite an 8% drop in trading volume.
This planned burn aims to reduce the circulating supply, potentially enhancing the value and stability of Terra Classic ecosystem tokens.
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