A new solution has been deployed to accelerate the burn rate of Terra Luna Classic (LUNC) tokens.
Eris Protocol, a liquid staking and auto-compounding protocol for LUNC, was recently launched to burn three times more Luna Classic tokens at the same cost.
Through Eris Protocol, users can stake their LUNC and still be able to move the tokens without having to wait for the 21-day un bounding period. These liquid Luna Classic tokens are called Amplified Luna (ampLUNC). The auto-compounding feature of the Eris Protocol allows for an increase in investors’ yearly yield.
LUNC DAO, a Terra Community validator that uses its commission to burn the Luna Classic tokens, write details:
“We found a way to burn WAY more for the same cost by working with erisprotocol.com, who just launched on LUNC You can also use this to multiply your LUNC.
eris_protocol is liquid staking, and auto-compounding protocol for LUNC Liquid staked LUNC on Eris is called $ampLUNC and lets you move around LUNC without having to wait for a 21-day un bonding period Auto-compounding of ampLUNC increases the yield you receive every year.
Therefore, if we send LUNC to the burn wallet, it simply stays the same amount of LUNC forever, But if we send ampLUNC to the burn wallet, it continues to receive staking rewards and burn the yield APY too. At current rates, approximately doubling the burn.
But wait, there’s more…Not only can we do this, but we can provide liquidity to the LUNC / ampLUNC pool on Astroport, then burn the entire LPNow we not only burn the auto compounded increasing value of ampLUNC, but also the APY from pool volume. This likely means burning >3X LUNC this year than the original 14.2M LUNC cost.”
Moves to Compensate Victims of Terra Collapse
The Eris Protocol solution joins the list of initiatives launched to compensate victims of the Terra ecosystem collapse. Burning part of LUNC supply is considered the best step to making Terra investors whole again.
Investors recently passed a proposal to implement a 1.2% tax burn on all on-chain LUNC transactions. The proposal is scheduled to be implemented on September 20, 2022, and several exchanges have declared they would support the move.
Some of the exchanges that have pledged support for the 1.2% tax burn include Binance, KuCoin, Gate.io, MEXC Global, Bitrue, etc.
Terra investors are confident that they can revive the ecosystem’s classic tokens – USTC and LUNC – via consistent community efforts.