š„š„š„ #TerraClassic Community Burns 1.1 Billion $LUNC in a Single Week
The Terra Classic ($LUNC) community recently executed a significant token burn, incinerating more than 1.1 billion tokens valued at over $100,000. This move aimed to reduce the total supply of the #cryptocurrency to 6.81267 trillion as part of ongoing efforts to boost its token price to $0.1.
As reported by cryptocurrency investor AlexCryptoBull on X (formerly Twitter), the community burned 1 billion LUNC tokens within a week, coupled with staking an additional 7.1 billion LUNC. Token burns are a strategy employed by certain crypto communities to decrease a token's circulating supply, potentially fostering price growth by maintaining or increasing demand while reducing overall supply. In this case, the burned tokens were sent to "dead wallets," eliminating them from circulation.
Major industry players, including Binance, have supported the LUNC burn initiative by removing over 1 billion tokens from circulation through celebrated transactions. Terra Classic's tokenomics involve an automatic mechanism that sends tokens to dead addresses with each transaction. The quantity of tokens sent is proportionate to the current circulation, ensuring a continual reduction in the total token supply and theoretically increasing their value due to growing scarcity.
It's essential to note that the original Terra ecosystem experienced a collapse last year and subsequently rebranded to Terra Classic. A new, forked #blockchainā retained the Terra brand. Following the ecosystem collapse, the circulating supply surged from 340 million tokens to 6.9 trillion. To counteract inflation, $LUNC supporters implemented a 1.2% tax burn on all network transactions.
The Terra Classic community is actively advocating for increased adoption, even initiating a petition for listing on the Coinbase cryptocurrency exchange. In recent months, LUNC token burns have expanded through various community-led projects, including Terra Casino, Cremation Coin, and DFLunc.
Source - cryptoglobe.com
