Can Terra Luna Classic’s Massive Token Burn Push LUNC to $1?
The post Can Terra Luna Classic’s Massive Token Burn Push LUNC to $1? appeared on BitcoinEthereumNews.com.
Terraform Labs recently burnt 251 billion LUNC and 264 million USTC, decreasing the number of tokens in circulation significantly. 264 million #USTC and 251 billion #LUNC have been burned 🔥🔥🔥 To the moon🚀🌕 pic.twitter.com/s06yfAtH8u — LUNC NEWS ⚡️ (@Chot4a) November 4, 2024 With these burns, many in the crypto community ask if LUNC could make a comeback and perhaps reach $1. LUNC’s Increased Supply and the Burn Program After the downfall of the Terra ecosystem in 2022, the supply of LUNC tokens increased greatly. This led to reduced prospects regarding the value of the token. – Advertisement – However, this supply has been a problem in the recovery. Since it has stagnated with trillions of tokens in the market. This program has received considerable backing from Binance to burn LUNC equivalent to trading volume fees on its platform. Efforts made in burning have been rather moderate, around 4% of the $6 trillion supply has been burnt. For the burn initiative to affect the prices, analysts recommend that the burn rate needs to increase substantially to offset the high inflation of LUNC tokens. The burns have received positive sentiment from the community, but higher prices for LUNC will require increased demand. Hence, without strong and consistent buying interest and activity, even large burns may not bring the price anywhere close to $1. Regulatory Compliance and Recent Developments TFL’s recent burns are due to compliance with regulations after an SEC settlement, which led to the burning of certain assets stored in Shuttle Bridge wallets. Apart from token burning, the Terra Luna Classic community has introduced a new tax system called the “Reverse Charge” mechanism. This approach enhances simplicity due to the reduction of numerous transaction taxes that are normally subtracted before the funds reach the recipient. Also, the Reverse Charge mechanism removes double taxation…
Filed under: News - @ November 5, 2024 8:25 pm