LUNC is seeing great interest from the Crypto Community, where could this lead?
According to the chain analysis firm SentimentLUNC, the original asset of the old Terra chain, is meeting a lot of interest from the crypto community as it sees a notable increase in related discussions.
🗣️ With #Terra society passes the 1.2% #taxburning initiative to $LUNC transactions in the chain, there has been a noticeable increase in asset-related discussions on social media today. The trending topic should create price volatility in the coming weeks. pic.twitter.com/2ik50mB3zt
— Santiment (@santimentfeed) 22 September 2022
The analysts wrote: “With the Terra community adopting the 1.2% tax burn initiative for LUNC chain transactions, there has been a notable increase in discussions related to the asset on social media today. The trending topic should create price volatility in the coming weeks.”
As for what this could lead to, Santiment predicts that the increase in discussions on social platforms could create price volatility in the coming weeks.
The 1.2% tax burn of LUNC was successfully performed on September 21st, after the block height of 9,475,200 was reached. At the time of writing, the price of LUNC is 0.000289 and has decreased by around 4.30% in the last 24 hours. The price has not changed much, contrary to the expectations of many who expect a tax burn.
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All on-chain transactions, including LUNC and USTC, will be subject to a 1.2% tax burn under Terra governance. This tax burn will not stop until there is 10 billion LUNC in total supply. The total supply of LUNC has decreased by 315,007,189, and the current total supply is approximately 6.9 trillion, according to the StakeBin burn tracker. Terra society expects to use the tax burn to maintain its supply of 10 billion permanently.
Here lies the biggest challenge
Will Chen, a former developer at Terra, addresses some crucial questions about the sustainability of LUNC: “Who are the LUNC whales? Who controls the network?” And how much ownership does the “community” have in relation to a couple of bad actors who bought in at asymptomatic prices?
He indicated that it may be “difficult to attract projects to build on Terra Classic until the rebels figure out who they’re working for.” He also highlighted the need to clarify incentives for the blockchain.
As reported by U.Today, Gokhshtein referred to the LUNC token as a lottery ticket, as in the classic children’s musical chair game.
Gokhshtein also mentioned that LUNC is owned by the community, with half of the members jumping in to play, while the other half are those who suffered from the collapse. He believes it would be an impressive comeback if the community could find a way to build a legitimate use case.
