Proposal to Burn Community Pool Submitted. Could It Get LUNC to $1?
Though introduced a week ago, the proposal has still not gotten the minimum deposit required for voting.
A Terra Classic (LUNC) community member has proposed to burn all the funds in the community’s Oracle Pool, which amount to hundreds of billions of LUNC tokens. Despite being unconventional and radical, the proposal has surprisingly garnered attention from some community members.
Proposal 11398 comes with a simple message: “burn community pool. caused nothing but stress to burn the sh-t.” The proposal was submitted seven days ago, with an initial deposit of 255,415 Terra Classic (LUNC). So far, deposits have increased to 299,500 LUNC, but still, a long way to the minimum required deposit of 1 million tokens.
The community pool is where the Terra Classic community gets funds to bankroll projects and development efforts to advance the network. The release of funds is contingent on governance votes. The pool receives periodic funds from a portion of the burn tax, particularly 10% of the 0.2% burn tax.
The Terra Classic community pool now has 235 billion LUNC, representing 3.4% of the asset’s total supply. Despite tireless efforts from the community, LUNC burns just recently hit 50 billion tokens, representing just 0.7% of the total supply. Incinerating 235 billion tokens would make a massive impact on the burn initiative.
Notably, prominent validator LUNC DAO has called attention to the proposal with comments that suggest they might be in support of it. Notwithstanding, the remarks could only be sarcastic, given the radicality of the proposition.
“Burn it all. LUNC to $1.”
— Penelope Picklebottom (@LUNCDAO) March 23, 2023
Evidence suggests that the proposal would not even make it to governance votes, as eliminating the pool would always be summarily dismissed for several reasons. One such reason is that bankrolling development efforts would come with great difficulty.
Despite its radical position, could the proposal have supported LUNC’s goal to hit $1? The answer remains a mystery. As of press time, LUNC is currently trading for $0.0001259.