A new Terra Classic project, launched in April, has taken the crypto world by storm, with over 1.5 billion LUNC tokens burned in just a few days. The protocol, known as DFLunc, aims to rapidly deflate the circulating supply of LUNC tokens by burning billions more. Near the Terra-LUNA crisis anniversary, this massive burn brings the total number of LUNC tokens destroyed to over 57 billion.
The LUNC burn rate has risen substantially in recent months. On May 1, Binance burned 1.27 billion LUNC as part of its monthly LUNC burn mechanism, raising the total number of LUNC burned to 55 billion, with 31.83 billion LUNC tokens contributed by Binance alone. Following Binance’s lead, the community burned millions of LUNC through the new DFLunc Protocol, a DeFi protocol consisting of multiple smart contracts designed to deflate LUNC supply through a continuous burning mechanism.
DFLunc Protocol also serves as a validator for Terra Classic, allowing users to mint its DFC token exclusively by burning LUNC tokens. Utilizing two smart contracts based on CosmWasm — DFLunc and CW20-DFC — users can burn LUNC and pay USTC as protocol fees to mint DFC tokens. With a staged plan focused on the growth of its validator on the Terra Classic chain, the community-driven protocol has now burned a staggering 57 billion LUNC tokens.
As the LUNC burn rate continues to climb, the price of LUNC tokens is preparing for a significant upside move. The Joint L1 Task Force is upgrading the Terra Classic network to v2.0.1, including a Columbus-5 Cosmos SDK v0.45.13 and Tendermint v0.34.24 upgrade, a minimum initial deposit for governance proposals, and enhanced code maintainability.
The Terra Classic blockchain will halt at block 12,812,900, estimated for May 17 at 14:03 UTC, followed by a Cosmwasm 1.1.0 Parity upgrade on May 31. This upgrade will once again allow projects and builders across Cosmos and Terra Luna 2.0 to build on the Terra Classic chain. The Inter Blockchain Communication (IBC) has already opened with other chains, but the Terra Classic Revival Roadmap by core developer Edward Kim still outlines several developments yet to take place.
With LUNC’s price jumping 15% in the last 24 hours, currently trading at $0.000092, the market seems to be taking notice. The 24-hour low and high are $0.000083 and $0.000097, respectively. In addition, trading volume has significantly increased in the last 24 hours, indicating a growing interest among traders.
While the burns and upcoming network upgrades certainly hold promise for the future of LUNC and the Terra Classic blockchain, it’s important for potential investors to conduct thorough research and remain aware of market conditions. As with any cryptocurrency investment, there are no guarantees, and it’s crucial to be prepared for any financial risks that may come with investing in digital assets like LUNC.
Source: Coingape
