Terra Classic (LUNC) is a blockchain protocol that emerged from the crisis of Terra (LUNA) in May 2022, when the algorithmic stablecoin UST lost its peg to the US dollar and caused a hyperinflationary spiral of LUNA tokens.
Since then, the Terra Classic community has taken charge of the original chain and rebranded its native token as LUNA Classic (LUNC) and its stablecoins as Terra Classic stablecoins (USTC, KRTC, EUTC). The main function of LUNC is to absorb the price deviation of USTC by minting and burning it to balance supply and demand.
Reducing LUNC Supply is the Top Priority
Recently, the Terra Classic core developer group Joint L1 Task Force (L1TF) has released its status update for the second quarter of 2023, as well as plans for the third quarter, as shared by LuncBurnArmy, the L1TF project manager on July 10.
https://twitter.com/luncburnarmy/status/1678224768288301056?s=20
The developer group has announced its plans to restore the LUNC burning by validators, which will reduce the circulating supply of LUNC and USTC. This is a strategic move to create more demand for the coin, as a lower supply usually means a higher price. The group is shifting its focus to this plan after completing other tasks.
A significant issue that has been troubling the LUNC community is the lack of participation from some of the major validators in the burning process. In a previous announcement, ClassyCrypto, one of the validators, revealed that Classy’s Crypto Sphere would burn all of its commission until the end of 2023 to revive the LUNC burn narrative by validators.
At the time of writing, LUNC’s price was $0.00008296, showing a daily gain of 1.84% but a weekly drop of 4.26%. The cryptocurrency also lost 7.74% of its value in the last month.
A possible way to rephrase this is: The circulating supply of LUNC will decrease due to the recent update, which may boost its value. However, reaching the desired $1 mark is not only a matter of supply and demand but also of other influences, such as new events and the general mood of the crypto market.
Terra Classic is a blockchain protocol that aims to power price-stable global payment systems with its fiat-pegged stablecoins and its native token LUNC. The protocol has survived a major crisis and is now working on improving its security, scalability, and functionality with various upgrades and proposals.
The future of Terra Classic will depend on how well it can maintain its stability, innovation, and adoption in the competitive crypto space.
