Although far from its ATH, the LUNC is still on many lips. Regularly trending on CoinMarketCap, is the token about to make the biggest comeback in the history of the crypto sphere?
An already present euphoria
While since May, the Terra blockchain and its various tokens have sunk into obscurity, the community has since sought to revive the LUNC from its ashes.
Indeed, all the aggrieved investors as well as many validators seek to reorganize to achieve the objective of the symbolic dollar. Currently, 4 zeros still separate the $1 token; it may seem like a lot, but it would only be a matter of time according to an already euphoric community on Twitter. A euphoria moreover exacerbated (perhaps a little too much) by certain validators, such as LUNC DAO or other loan or remote accounts connected to LUNC.
At the same time, the total marketcap of the LUNC token has increased sharply in recent days, while the bear market is still in play, rising from $600 million to $800 million. Also, the token’s trading volume recorded by CoinMarketCap is $400 million, up 100% over the past 24 hours. The activity surrounding the token is increasing, ahead of the various events that revolve around its news.
Reopening of staking and new hope
Staking was reopened on Friday 26/08/2022 at 22:00 UTC with the main validators surrounding the LUNC community. This announcement has been awaited by investors and it is already producing great results. As mentioned earlier, the trading activity surrounding the token has continued and the price has also increased, while all cryptocurrencies are down.
Staking should be an important element regarding the future of the token, since it will be community-driven, promoting token burn and reviving the ecosystem. The proposal that was carried out and accepted was also made with the promise by the validators not to obtain any financial gain, and only to contribute to the return of the LUNC.
While a fork was done previously, with the launch of a second version of the token, no one ever actually endorsed and shared this decision. The disenchantment with the LUNA is such that the latter has seen its price constantly fall since its launch, while the market cap of the token and its trading volume are lower than that of the LUNC.
What was long awaited by the community since the crash of May will finally take place: an optimization of token burn on all fronts.
LUNC DAO makes beautiful promises, hoping that the facts will follow, for the well-being of a community which has managed to survive and which has not completely deserted.
What does LUNC token burn represent?
Token burn is igniting the crypto sphere as well as the entire LUNC community. Indeed, this is one of the only good news for old investors, and one of a new opportunity for newcomers, who feel attracted by possible gains. Indeed, the objective since the hyper inflation has always been to get rid of the surplus token.
Although the implementation was slow, with only recurring shipments of millions of tokens to the token’s dead wallet, the burn is gradually taking shape.
First, validators would have to discard their earnings obtained through staking to burn LUNC tokens. A great opportunity that should motivate investors to deposit their tokens through the Wallet Terra Station on the staking pools.
At the same time, a 1.2% tax will soon be implemented to intensify the rate of token burn. If we take the example cited by the Twitter account LUNC Burn, which traces transactions to the dead wallet, with this tax at the end of each transaction, billions of tokens could be burned daily.
If we are based on the participation of exchanges (in particular Binance) in implementing this tax on transactions surrounding the LUNC token, and today’s trading volume recorded by CoinMarketCap (nearly 400 million dollars), not less than 37 billion tokens could be withdrawn from circulation daily (based on the current price of the token).
A quantity with meager appearances, but which seems to strongly motivate the LUNC community to soon remove several 0s from the price of the token.
According to CoinMarketCap, the current total supply is 6.582 billion tokens. Withdrawing 37 billion tokens per day would therefore be equivalent to withdrawing 0.5% of the tokens in circulation. After all, the comeback may not be entirely impossible if promises are kept and facts accompany them.
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