Terra Luna Classic Community Anticipates Major USTC and LUNC Token Burn Amid Bankruptcy Proceedings
The Terra Luna Classic community is eagerly anticipating a substantial burn of USTC and LUNC tokens by Terraform Labs (TFL) as part of the Chapter 11 bankruptcy proceedings and a U.S. court order tied to the SEC case. While the exact number of tokens set to be burned remains unclear, community members estimate the burn could involve over 1 billion USTC and 275 billion LUNC tokens.
Terra Luna Classic Community Awaits USTC & LUNC Burn
On September 9, Terra Luna Classic validator HappyCattyCrypto shared his findings on X (formerly Twitter) regarding the potential scale of the upcoming token burn by TFL. His research suggests that the burn could see more than 1 billion USTC and 275 billion LUNC tokens removed from circulation as part of the bankruptcy process.
Additionally, over 2.58 billion LUNC tokens have reportedly been reclaimed from the shuttle bridge reopened by TFL, according to data from Terra Finder transactions.
HappyCattyCrypto also urged the Terra community to move the Mirror Protocol and Anchor Protocol contracts to new governance-approved code, similar to the Risk Harbor migration. These protocols hold native Terra assets such as USTC and LUNC.
As outlined by Chris Amani and per the court’s ruling, all Terra Luna Classic assets must be burned. After October 31, TFL will cease all interactions with the Columbus-5 and Phoenix-1 chains, making any further token burns or transfers difficult post-deadline.
“With TFL winding down its operations, Proposal 4818 will serve as the final chain upgrade we implement. Following TFL’s settlement with the SEC and the approval of its Chapter 11 plan, TFL will no longer support future chain upgrades,” according to a statement from Terra Money.
In terms of potential burns, the Mirror Protocol alone could see 480,404,166 LUNC tokens burned, as mentioned in a Commonwealth post. Additionally, the burn may involve 46,556,271 USTC from Mirror Protocol and 729,976,293 USTC from Anchor Protocol.
LUNC and USTC Price Movements
Following recent developments, Terra Luna Classic ecosystem tokens LUNC and USTC have shown signs of recovery from recent lows, supported by a growing sense of optimism in the crypto community. A contributing factor to this momentum is Genuine Labs’ announcement that it will soon proceed with the Tax2Gas upgrade following a series of tests.
LUNC’s price has risen 5% from its 24-hour low, currently trading at $0.00007537. The token’s 24-hour high and low stand at $0.00007906 and $0.00007543, respectively. Trading volume has also surged by 27% in the last 24 hours.
Meanwhile, USTC is currently trading at $0.01593, reflecting a 10% gain over the past week. Its 24-hour low and high are $0.01532 and $0.01593, respectively, though trading volume has dropped by 8% over the same period.
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