A Terra Classic (LUNC) community member has recently suggested the complete burning of tokens in the community’s Oracle Pool. The proposal submitted a week ago began with an initial deposit of 255,415 LUNC. However, the current volume of raised funds is 299,500 LUNC, which is still below the minimum threshold of one million LUNC required to initiate the voting process. The proposal is awaiting further support from the community to move forward.
The proposal, officially known as “Proposal 11398,” suggests the incineration of the community pool, citing it as a source of stress and unproductivity. However, it’s important to note that the community pool is Terra Classic’s primary funding for project execution and network development, receiving 10% of the overall 0.2% burn tax. The allocation of these funds is subject to governance votes, ensuring responsible and strategic use.
In the latest quarterly burn exercise on March 2, 2023, Binance demonstrated its commitment to token holders by incinerating a staggering 8.9 billion LUNC. This impressive feat accounted for 50% of the total spot and margin trading fees generated by the token in the preceding three months. Subsequent LUNC token burn exercises have since ensued, culminating in 50.11 billion LUNC being permanently removed from circulation. Binance’s unwavering dedication to enhancing the value of LUNC is a testament to its professionalism and commitment to excellence.
The proposed incineration of the Terra Classic community pool, which holds 235 billion LUNC, equivalent to 3.4% of the total supply, has sparked user discussions. While the percentage may seem insignificant, removing this volume from circulation could have a notable effect on the price of LUNC, potentially driving it up to $1. As the community weighs the pros and cons of this proposal, it is essential to consider the potential impact on the market and make informed decisions.
LUNC DAO, a prominent validator on the Terra Classic network, has officially endorsed the latest proposal. The validator took to Twitter to share a screenshot of the process, accompanied by the statement, “We fully support the proposal. Let’s burn it all and take $LUNC to $1.”
Despite LUNC DAO’s expressed support, the veracity of their backing remains uncertain, with certain community members speculating that the tweet may have been laced with sarcasm. The reality is that the successful implementation of Proposal 11398 would be a formidable challenge, given the potential ramifications of financing network advancements in the long run.
