Terra Classic Project DFLUNC Burns Over 1.6 Billion LUNC

DFLunc, a popular new Terra Classic project, has burnt over 1.6 Billion LUNC tokens in only two weeks thanks to its huge LUNC burn mechanism. The huge LUNC burn by the protocol brought the overall LUNC burn to more than 57.8 billion.

Terra Classic Project DFLUNC Burns Over 1.6 Billion LUNC

DFLunc, a well-liked new project called Terra Classic, has successfully burned over 1.6 billion LUNC tokens in a remarkably short span of two weeks, thanks to its effective LUNC burn mechanism. When the DeFi protocol was launched in April, its main objective was to burn billions of LUNC tokens at once, thereby reducing the inflated circulating supply.

The protocol’s significant LUNC burn has now reached a total of more than 57.8 billion tokens. On May 1st, as part of its monthly LUNC burn mechanism, Binance burned 1.27 billion LUNC tokens. In total, Binance has burned an impressive 31.83 billion LUNC tokens so far.

On May 12, DFLunc announced via Twitter that it had burned over 1.6 billion LUNC tokens, surpassing Binance’s burn of 1.27 billion LUNC tokens at that time. As interest in Terra Classic continues to grow, the community has already burned approximately 2 billion LUNC tokens through the DFLunc Protocol.

By utilizing a perpetual burn mechanism, the DeFi protocol effectively reduces the supply of LUNC tokens. It consists of a collection of smart contracts, with the DFLunc Protocol serving as a validator for Terra Classic. The protocol relies on two CosmWasm-based smart contracts, namely DFLunc and CW20-DFC.

To mint DFC tokens, users must exchange existing LUNC tokens for burn value and pay USTC as protocol fees. The DeFi protocol requires a greater amount of LUNC to be burned as more tokens are staked via the validator. The overall strategy of the protocol is divided into intermediate goals, with the final goal being the expansion of its validator on the Terra Classic chain.

As evidenced by the transactions, the protocol is still consuming LUNC through the contract address. The community has currently burned a total of 57.8 billion LUNC tokens.

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