LUNC Burns To Increase as Businesses Look To Adopt Terra Classic Payments SDK

Reducing the LUNC supply remains one of the community’s biggest goals.

According to Dan Gerchovich, a community member who developed the software development kit (SDK), businesses want to integrate the Terra Classic payments gateway.

Gerchovich revealed this in a tweet yesterday, noting that increased adoption of the solution would lead to increased on-chain volume and Terra Luna Classic burns.

“… things are finally looking up,” the developer wrote, calling for other businesses and developers interested in crypto payment gateways to contact him.

Also if you are a business or a #dev looking to provide #crypto payments for your customers, please get in touch with me via discord, or just tag me on a post, I'll message back ?#lunc #luna #LUNCcommunity #LUNC #LUNA

— Dan Gerchcovich (@realArchitectDG) March 14, 2023

The solution is currently designed to work with existing applications, Gerchovich explained in response to inquiries. These can be any application, including games with developers looking to offer LUNC payments. According to Gerchovich, using the SDK dubbed “Terra.Net.OnChainPayments,” the application can “make calls to the gateway that handles payments.”

It bears mentioning that reducing the LUNC supply remains one of the core goals of the community-run chain. To this end, the community has debated several strategies, including promoting voluntary burns from projects and validators and implementing a 0.2% on-chain tax parameter. Per recent changes ushered in with the Terra Classic v1.1.0 upgrade, 90% of the LUNC obtained from the tax is sent to the burn wallet, while 10% is sent to the community pool to support project funding. 

However, the dwindling on-chain volumes fueled by a lack of many popular decentralized applications (DApps) and the bearish market conditions have ensured that most LUNC burns are voluntary. Per TerRarity data, the community and its supporters have sent over 48.6 billion LUNC to the dead wallet, with the on-chain tax contributing only 14.3 billion LUNC to this total. Binance remains the largest contributor, with over 28 billion LUNC.

Recall the de-pegging of the Terra dollar-pegged stablecoin, now called TerraClassicUSD, led to the minting of an excess of 6 trillion LUNC due to an underlying mint and burn arbitrage mechanism. Consequently, the hyperinflation caused the token to lose 100% of its value, dropping highs of nearly $120 to $0.0001339 at the time of writing.