Terra Classic rises 500% after new supply burn feature
12:12, 9 September 2022
Terra Classic (LUNC) has seen a surge in price over the course of the past month by over 500% after a new token burning system was introduced.
The rise, by 504% has been attributed to a proposal by a Terra Classic community member, Edward Kim. The proposal originally stated that a 1.2% token burn should be implemented on all transactions with the aim of making LUNC a deflationary crypto.
On 10 August, LUNC was priced at 0.00009464, almost a month later on 8 September it had risen to 0.0005722 according to CoinMarketCap.
There already was a burning mechanism for LUNC called the LUNC Burner that has already removed more than 3.7 billion tokens from circulation.
LUNC was created after the collapse and depegging of the stablecoin TerraUSD (UST), which then impacted its sister coin Terra (LUNA) earlier this year (2022). The collapse led to the creation of the original LUNC and the new LUNA token.
The leap in value for LUNC comes despite more attention being placed on the new Terra crypto. In August, Illiquid Labs, a non-fungible token (NFT) infrastructure toolbox, started to offer NFT migration from Terra Classic to Terra 2.0.
So far, the NFT migration is available to Terra Classic NFT projects including Galactic Punks, Space Toadz, Lootopians and Meta Royals NFTs. In a tweet, Illiquid has said more NFTs will be available to migrate soon.
The Knowhere NFT marketplace is now also “fully up and running on Terra 2.0”.
New staking system
Additionally, a new staking system went live on 27 August. Thus far, 610 billion LUNC have been staked, against its net supply of 6.9 trillion units. This is also believed to be a factor in LUNC’s surge in price.
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Outperformance
The same month saw Bitcoin (BTC) and Ethereum (ETH) fall in value. The lead crypto, BTC, dropped from $24,036 to $21,064 and ETH from $1,830 to $1,641.
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