According to an on-chain analytics company moodLUNC, the legacy Terra Chain’s native asset, is attracting a lot of interest from the crypto community as there is a notable surge in related discussions.
🗣️ With the #terra community that exceeds the 1.2% #tax burn initiative for $LUNC On-chain transactions, there has been a notable surge in discussion of the asset on social media today. The trending theme is likely to cause price volatility in the coming weeks. https://t.co/yZiCxMxHOO pic.twitter.com/2ik50mB3zt
— Santiment (@santimentfeed) September 22, 2022
Its analysts wrote, “As the Terra community passed the 1.2% tax burn initiative for LUNC on-chain transactions, there was a notable surge in discussion of the asset on social media today. The trending theme should provide price volatility in the coming weeks.”
What this could lead to, Santiment predicts is that the increase in discussions on social platforms could lead to price volatility in the coming weeks.
LUNC’s 1.2% tax burn was successfully completed on September 21 after reaching the block height of 9,475,200. At the time of writing, the price of LUNC is 0.000289 and is down about 4.30% in the last 24 hours. The price hasn’t changed all that much, contrary to the expectations of many expecting tax burn.
All on-chain transactions, including LUNC and USTC, are subject to a 1.2% tax burn under Terra governance. This tax burn will not stop until there is a total of 10 billion LUNC. LUNC’s total supply has decreased by 315,007,189, and the current total supply is about 6.9 trillion, according to the StakeBin Burn Tracker. The Terra community expects to use tax burn to keep the supply at 10 billion permanently.
Here lies the greatest challenge
Will Chen, a former developer at Terra, raises some key questions about LUNC’s sustainability: “Who are the LUNC whales? Who controls the network?” And how much ownership does “the community” have compared to a few bad actors who bought in at asymptomatic prices?
He pointed out that until the rebels figure out who they’re working for, it “might be difficult to attract projects built on Terra Classic”. He also stressed the need to clarify incentives for blockchain.
As reported by U.Today, Gokhshtein referred to the LUNC token as a lottery ticket, like in the classic children’s music chair game.
Gokhshtein also mentioned that LUNC is community-owned, with half of the members jumping in to play while the other half are those who suffered from the collapse. He believes that if the community could find a way to build a legitimate use case, it would be an impressive comeback.