TerraCVita explains how the DEX will be a LUNC furnace.
Independent Terra Classic development group TerraCVita yesterday released the white paper for its decentralized finance project dubbed Terraport.
— TerraCVita (@TerracVita) January 16, 2023
Per the write-up, the project not only comprises a decentralized exchange that will allow users to trade assets on-chain and cross-chain but also consists of a launchpad where users can fund projects and a lottery game for entertainment.
Recall that senior TerraCVita member Rex Harrison AKA Rexzy has often promoted the project as a Terra Luna Classic (LUNC) furnace implying that it will significantly contribute to LUNC burns. The white paper released yesterday and the accompanying Medium blog post reveal why.
According to the team, every week, the treasury will buy back and burn LUNC with 27% of all fees received. Per the white paper and accompanying medium blog post, developers believe the project has the potential to burn billions of LUNC weekly. Notably, the treasury will also conduct weekly burns of TERRA, the protocol native token, with 22% of all treasury funds, creating scarcity that could significantly increase the token’s value over time.
“The treasury will be responsible for reducing circulating supply of LUNC and TERRA by swapping 27% of the available funds into LUNC and 22% into TERRA, respectively, then sending the assets to the burn address,” the team wrote. “This will make it possible to greatly reduce the amount of TERRA in circulation over time by increasing its value and at the same time reduce the LUNC circulating by performing weekly burns of several billion.”
TERRA has a 1 billion token max supply, with 2% of the supply allocated for builders.
Meanwhile, TerraCVita has left the protocol’s governance to the community via the TERRA DAO. Consequently, all users can participate in governance by holding xTERRA, the governance token. “TERRA holders will receive a counter value of xTERRA usable in governance,” the team wrote.
It bears mentioning that the team has raised over $2 million in funding for the project via private TERRA sales. The Terraport launch is scheduled for Q1 2023, most likely after 5 weeks of public sales.