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The Terra Classic communityis preparing for a supply shock that the LUNC coin could soon face. This is based on a court settlement that has mandated Terraform Labsto burn the tokens in their possession. Court Orders LUNC Burn As Part Of Terraform Labs Settlement
Terraform Labs is set to carry out LUNC burns as part of its $4.5 billion settlementwith the US Securities and Exchange Commission (SEC). These burns must be carried out before the end of this month, or Terraform Labs will have to pay a fine. According to the SEC, the crypto firm must burn or destroy private keys in its possession of wallets holding these LUNC coins. Related Reading Bitcoin Cup And Handle Cascade: Analyst Says BTC Price Could Reach $230,000 If It Follows This Structural Path 1 day ago
Based on the deadline, the LUNC burnmay occur this week. Ahead of the burn, Terra Classic community members have also been toldto withdraw their assets locked on the Shuttle Bridge, as it will also be closed during the LUNC burn and never be opened again.
Terraform Lab’s imminent LUNC burn is undoubtedly a positive for the coin, as this could provide much-needed bullish momentum and lead to a significant price surge. Moreover, this aligns with the Terra Classic community’smission to remove as many coins as possible from circulation to revive LUNC.
They believe this deflationary mechanism could help send the coin back to its current all-time high (ATH) of $119. LUNC Metrics datashows that 135.54 billion coins have been burned since these token burns began on May 13, 2022. Meanwhile, 303.6 million coins have been burnt in the last seven days. However, the community still has a lot of work to do, considering that LUNC still has a circulating supply of 6.76 trillion. Other Steps Taken By The Terra Classic Community
In addition to LUNC burns, the Terra Classic community has taken other stepsto help revive the coin and restore it to its glory days. This includes developing proposals to improve the LUNC ecosystem and promote the coin’s adoption.
The most recent proposalis from OrbitLabs to remove the forked mainline modules from the Terra Classic blockchain. The proposal states that this will help improve maintainability, reduce technical debt, and align with the broader Cosmos ecosystem. Related Reading Ethereum Price Breaks Out Of Symmetrical Triangle, Next Stop $3,400? 23 hours ago
OrbitLabs further highlighted the current situation in the LUNC ecosystemto show why this proposal is necessary. According to them, the Terra Classic codebase uses several forked versions of Cosmos modules to accommodate its unique features. This has led to the codebase diverging from the upstream modules and increasing maintenance costs.
Therefore, this new approach will help ensure that the Terra Classic blockchain is current with the latest securities and features from the Cosmos development team. This will help massively reduce maintenance costs and time.
At the time of writing, LUNC is trading at around $0.0000925, down over 2% in the last 24 hours, according to datafrom CoinMarketCap. Price struggles with bearish pressure | Source: LUNC/USDT on Tradingview.com Featured image created with Dall.E, chart from Tradingview.com