LUNC Targets $1 With Terra Classic Community Token Burn Proposal
A Terra Classic (LUNC) community member has proposed burning the entire tokens in the community’s Oracle Pool. The proposal submitted about seven days ago launched with an initial deposit of 255,415 Terra Classic (LUNC). So far, 299,500 LUNC has been raised, a volume still far from the minimum of one million LUNC required to initiate the voting process.
The proposal, termed “Proposal 11398,” has the message “burn community pool. caused nothing but stress to burn the sh*t.” The community pool, in this case, refers to Terra Classic’s source of funds for project execution and efforts toward network development. That particular pool is funded with 10% of the overall 0.2% burn tax, and the release of funds depends on governance votes.
On March 2, 2023, Binance burned 8.9 billion LUNC in the latest quarterly burn exercise. That amount represented 50% of the total spot and margin trading fees for the token in the previous three months. Other LUNC token burn exercises have followed, bringing the total number of LUNC burned to 50.11 billion.
The Terra Classic community pool proposed for burning has 235 billion LUNC, representing 3.4% of the total supply. Though a relatively small portion, users believe that getting such a volume out of existence could significantly impact the price of LUNC, perhaps pushing it to $1.
One of the notable validators on the Terra Classic network, LUNC DAO, has registered support for the recent proposal. In a tweet, the validator shared a screenshot of the exercise with the caption, “Burn it all, $LUNC to $1.”
However, the authenticity of LUNC DAO’s support is yet to be guaranteed, as some community members suggest that the tweet could have an undertone of sarcasm. In reality, achieving Proposal 11398 would be a tall order, considering the consequences that could come with the difficulty of bankrolling network developments in the future.
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