Terra Classic Burns 100 Billion Tokens, LUNC Price Soars

LUNC began to be burned. (Photo; Doc. Analytic Insight)

JAKARTA - Terra Classic (LUNC), a blockchain platform focused on supply chain solutions, is enjoying a bullish rally in the Bitcoin-triggered crypto market. LUNC prices rose 1.78% in the last 24 hours, and recorded a 24% increase from last week's lowest level. In addition, LUNC also managed to burn nearly 100 billion tokens, demonstrating community commitment to increase the value of these assets.

Terra Classic (LUNC) is the original token of the first Terra network, which changed its name to Terra Classic after a proposal for management of 1623 by the Terra community, following the UST depegging event in 2022. This network, with a disabled market swap function (minton/burn function), is represented by LUNC. LUNC serves as a staking asset on the Terra Classic network, secures the Proof of Stake (PoS) system and facilitates governance participation. Despite the formation of a new Terra network, LUNC remains functional in the Terra Classic ecosystem, acting as collateral for its stablecoin-stablecoin and getting reward for transaction fees.

LUNC Up 24% In A Week

Based on data from CoinMarketCap, in the past week, LUNC has shown impressive performance, with prices rising from $0.00000937 (Rp1.46) to $0.0001163 (Rp1.81) per coin. LUNC's market capitalization also experienced the same increase, from $543.9 million (Rp8.48 trillion) to $672.8 million (Rp10.48 trillion).

LUNC's trading volume fell 22.38% to $36.8 million, but this does not reduce the fact that there is ongoing recovery in the LUNC ecosystem. LUNC is currently trading on various crypto exchanges, such as Binance, Huobi Global, Gate.io, and others.

LUNC Burns 100 Billion Tokens

One of the main factors driving the increase in LUNC prices is the burning of tokens carried out by the community. Based on data from Luncmetrics, a site that tracks LUNC burning data, the community has managed to burn as much as 383.2 million LUNC over the past week. This figure almost reached the total LUNC that burned since May 2022 to 98.6 billion, with only 1.4 billion more towards the 100 billion milestone.

Burns of tokens or commonly called burning are a process in which a number of tokens are removed from circulation, thereby reducing supply and increasing demand. The burning of LUNC tokens is done through a governance proposal submitted and approved by LUNC holders. The purpose of burning tokens is to increase the value of LUNC in the long term, by following basic economic principles.