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While the cryptocurrency market remains flat, the price of Terra Classic (LUNC) continued its ride higher.
At the time of publication, LUNC was up 16% at $0.0001796 and 35% in the past week. This comes as the market consolidates at the end of the year, with most cryptocurrencies recording minimal gains or even losses. LUNC trading volume was also up 155% in the last 24 hours as traders jumped in to capture gains from the recent volatility.
📈Why #LUNC is up 13% in the last 24 hours?
— Satoshi Club (@esatoshiclub) December 27, 2022
👉The community is voting on a proposal that would reverse a decision to transfer 50% of all #LUNC burns to a community development pool.
👉The network has witnessed accelerated #burning of LUNC in a bid to give the asset utility pic.twitter.com/cJdBrQNetG
Notably, LUNC has achieved five positive days out of six since Dec. 22, when its price started a rebound after Binance announced the completion of the second round of airdrops for LUNC and USTC holders. The recent rise also correlates with the community's efforts to bring wholeness to the project, as seen in burn efforts and recent proposals.
Tomiwabold OlajideAfter the Terra ecosystem collapsed, the original Terra chain was rebranded as Terra Classic with tokens LUNC and USTC, while the new chain was named Terra (LUNA) at its genesis.
The circulating supply of the original Terra LUNA increased by millions of percent as the effect of the Terra USD (UST) losing its peg to the dollar took its toll. The supply then rose from nearly 342 million to the current 6.87 trillion.
With a surprisingly massive increase in its supply, the community launched several proposals to reduce the nearly 6.9 trillion supply, and this included burning. The 1.2% tax burn proposal was passed but later slashed to 0.25.
Currently, the community has embarked on massive LUNC burning.
Although it is not guaranteed, burning might boost an asset's price in the long run. Similarly, the community is voting on whether to repeal the decision to transfer 50% of all LUNC burns to a community development pool.
Denys Serhiichuk
Vladislav Sopov
Dan Burgin