Will Do Kwon Heed The Call To Burn Terra Instead Of Forking, Community Wants Nothing Else But LUNA Burns

Terra (LUNA) community wants nothing else but LUNA burning.

The collapse of the Terra Luna ecosystem was a huge shock to the crypto industry. It reveals a fundamental flaw in how some blockchains are managed, a flaw that can lead to very quick capitulation of their entire ecosystem. However, Terra’s founder, Do Kwon, has proposed a plan to take the failing ecosystem in a new direction.

Do Kwon’s plan is to fork the Terra chain and create a new LUNA, with the current one designed as Luna Classic (LUNC). However, the majority of the Terra community are against this plan. Even the Binance CEO has offered his opinion on the matter, saying that the forking plan is flawed in that it wouldn’t give the newly forked coin any relevant value.

Personal opinion. NFA.

This won't work.
– forking does not give the new fork any value. That's wishful thinking.
– one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).

Where is all the BTC that was supposed to be used as reserves? https://t.co/9pvLOTlCYf

— CZ ? Binance (@cz_binance) May 14, 2022

Binance’s CEO also supports the community idea that Luna supply can only be reduced by burning LUNA and nothing else.

Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.

I don't own any LUNA or UST either. Just commenting.

— CZ ? Binance (@cz_binance) May 14, 2022

Win Back Trust

It appears that Do Kwon and his team are leading the Terra ecosystem in the wrong direction. That’s according to investors who feel that their trust in Do Kwon and the Terra development team is being abused. The community wants an urgent burning of Luna’s existing supply.

If @stablekwon really wants to gain SOME trust back, he only can start burning the existent $LUNA supply and build back better.

A hardfork will feel like a knife in the back to every holder, feeling like the captain has jumped ship. https://t.co/j0FsQlDLuM

— CryptoCribz ⓣ (@CCribz) May 17, 2022

According to these community members, creating a new LUNA fork would outright betray those who have already invested in LUNA. Do Kwon’s proposal is to fork the new LUNA and then airdrop the new coins to the affected investors. However, this doesn’t guarantee that the new coin will have any higher value than the current one.

As such, most people are in favor of burning the existing LUNA stash to boost demand and price. In fact, a recent voting session went awfully against Do Kwon’s proposal. About 90% of the voters faulted the plan and stood for the burning of extra LUNA as opposed to forking.

How The Burn Would Work

According to a tweet by one user, the burning mechanism can be implemented easily by introducing a 10% tax on all buy and sell LUNA transactions. Increased trading volumes would mean more extra LUNA burned. For example, a transaction volume of around 10 billion LUNA traded would result in around 1 billion coins burned. The user opines that this would be the best solution as compared to creating a whole new LUNA coin. Whether Do Kwon and his team will take the community’s advice and scrap the forking plans is yet to be established.