The Terra Classic ($LUNC) community has recently burned more than 1.1 billion tokens, valued at over $100,000, bringing the total supply of the cryptocurrency down to 6.812,67 trillion amid renewed efforts to help its price reach $0.1 per token.
According to an update shared by cryptocurrency investor AlexCryptoBull on the microblogging platform X (formerly known as Twitter), 1 billion LUNC tokens were burned in a single week, while another 7.1 billion LUNC were staked.
Tokens burns are used by some cryptocurrency communities as a way to reduce an asset’s circulating supply, potentially helping their prices rise if demand is maintained or grows, while supply is reduced through these events. Token burns occur whenever funds are sent to so-called dead wallets – wallets that no one controls – effectively removing them from circulation.
The LUNC burn initiative has gained support from major industry players, including Binance, which has on numerous occasions removed over 1 billion LUNC tokens from circulation in transactions that were celebrated by the community.
Terra Classic’s tokenomics employ a mechanism that automatically sends tokens to a dead address every time a transaction is made. The number of tokens sent to these wallets is proportional to the current circulation, guaranteeing a perpetual dwindling of the total token supply, and hypothetically inflating their value as scarcity increases.
It’s worth noting that the original Terra ecosystem collapsed last year and later rebranded to Terra Classic, while a new, forked blockchain took the Terra brand with it. When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2% tax burn on all transactions conducted on the network.
The Terra Classic community, has been battling for increased adoption and even created a petition to get listed on cryptocurrency exchange Coinbase. Over the last few months, LUNC token burns have been growing through several community-led projects, including Terra Casino, Cremation Coin, and DFLunc.
Featured Image via Pixabay
