New Terra Luna Classic (LUNC) Burning Proposal Receives 80% Votes In Favor, Will It Be Implemented?

A Proposal To Burn LUNC Causes A Jump In Price And 100% Increase In Trading Volume.

A LUNC investor has fielded a proposal to burn tokens and caused a sharp rise in price.

For some time now, the Terra community has complained that Do Kwon and Terraform Labs have abandoned LUNC and UST. An initial demand by the community for TFL to implement a LUNA burning mechanism was rejected, and Do Kwon and his team instead elected to create Terra 2.0.

Now, another proposal by a LUNC investor is causing ripples within the community and the crypto market. The proposal suggests a straightforward LUNC burning mechanism that will lead to a decrease in supply and an increase in price.

The LUNC Burning Mechanism

According to the proposal, a 1.2% tax/burn will be implemented on all LUNC transactions – both buy and sell. Every time a transaction is initiated, 1.2% of the tokens involved will be burned. This will create a situation where LUNC tokens will continuously decrease in the market. A decrease in supply means an increase in demand and that translates into an increase in price.

However, this burning mechanism will be halted once the total supply of LUNC tokens reaches 10 billion LUNC. After that, the supply will remain constant and will not be tampered with forthwith.

The proposal says:

“A Tax Burn mechanism is to be implemented on LUNC to reduce the Total Supply. Implement a Tax + Burn mechanism on each buy-sell transaction: 1.2% burn tax This mechanism should be true until the total supply = 10 billion LUNC, after that, this mechanism is disabled and the total supply can never be changed.”

Terra Team To Support It?

The proposal appeals to Terra to support the mechanism and make official announcements of the same on all social platforms.

Exchanges will also be needed to support the burning. Terra will share the official burning address on its social media outlets. This will work to stop the scams where people have been given false burning addresses and ended up sending their tokens to fraudsters.

Apparently, the 1.2% tax is a comfortable figure that the community can work with as opposed to earlier proposals that suggested higher percentages.

85% Support Proposal

Voting on the proposal is currently in progress, and close to 85% of the voters support the motion. These have over 133 million LUNA. Around 14% have abstained, while a measly 0.4% have voted NO with the vote.

These have just around 667,447 LUNA. From the look of it, the proposal is bound to pass. It’s yet to be seen whether Do Kwon, TFL, and exchanges will support LUNC burning.

LUNC is already reaping from the buzz created by the proposal. The coin is up 18% on the daily, and still going up. The price is now at $0.000073. The trading volume has also gone up by 107% in 24 hours to reach $349.6 million.