- A new Terra Classic project has burned over 1.5 billion LUNC tokens in the last few days.
- The total LUNC burn has surpassed 57 billion, with the new project contributing more burns than Binance.
Terra Classic Project Burns Billions of LUNC Tokens, Surpassing Binance
A new Terra Classic project, launched in April, has made significant strides in burning LUNC tokens. In recent days, over 1.5 billion LUNC tokens have been burned by the protocol. The project aims to deflate the circulating supply by burning billions of LUNC tokens, and with this recent burn, the total LUNC burn has now exceeded 57 billion.
Rise in LUNC burn rate
On May 1, Binance contributed to the LUNC burn by burning 1.27 billion tokens as part of its monthly LUNC burn mechanism. This brought the total LUNC burn to 55 billion, with Binance’s contribution alone amounting to 31.83 billion LUNC tokens.
However, the LUNC burn rate has continued to rise after the Binance burn. A new project called DFLunc Protocol has gained attention for burning millions of LUNC tokens. This decentralized finance (DeFi) protocol utilizes multiple smart contracts and aims to deflate the LUNC supply through continuous burning.
DFLunc Protocol and LUNC burning mechanism
DFLunc Protocol, a validator for Terra Classic, plays a key role in the LUNC burning process. Users can mint the protocol’s DFC token by burning LUNC tokens. The protocol consists of two smart contracts: DFLunc and CW20-DFC. To mint DFC tokens, users burn LUNC by paying USTC as protocol fees.
The protocol has divided its plan into different stages to foster the growth of its validator on the Terra Classic chain. As the protocol continues to burn LUNC tokens, the total burned by the community has now surpassed 57 billion. Transactions indicate that the protocol is actively burning LUNC through its contract address.
Alongside these burns, the Joint L1 Task Force is preparing to upgrade the Terra Classic network to v2.0.1, incorporating Cosmos SDK v0.45.13 Columbus-5 and Tendermint v0.34.24 upgrades. The upgrade aims to enhance code maintainability and establish a minimum initial deposit for governance proposals.
The Terra Classic blockchain will halt temporarily at block 12,812,900 on May 17, followed by the Cosmwasm 1.1.0 Parity upgrade on May 31. This upgrade will enable projects and builders across Cosmos and Terra Luna 2.0 to resume building on the Terra Classic chain. While the Inter Blockchain Communication (IBC) has already been opened with other chains, further developments are planned as part of the Terra Classic Revival Roadmap.
In terms of price, LUNC has experienced a 15% increase in the last 24 hours, currently trading at $0.000092. The trading volume has also seen a significant rise, indicating growing interest among traders.