The Terra Luna Classic community has received widespread support from market participants for its USTC burn proposal. The initiative has gained significant traction following TerraForm Labs’ decision to wind down its operations and burn its remaining assets. The new burn proposal targets a total burn of 46.55 million USTC, focusing on wallets affiliated with the Mirror Protocol. Despite similar burns in 2023, investors outside the community have long shown little interest in these developments.
Following the announcement, the LUNC price increased by nearly 3% to $0.00008976, and trading volume increased by 17% to $26 million. The USTC price increased 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 affiliated 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. While this allows LUNC to separate from the Do Kwon team and operate independently, 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 removing passive contracts and complying with legal regulations.
