- LUNC’s price surged by 45% following the community’s approval of a proposal to impose a 100% Tobin tax, effectively halting USTC minting.
- The Terra Classic community is also considering a proposal to burn 800 million USTC tokens, indicating a proactive approach to managing the token’s supply.
A Remarkable Surge for LUNC
Terra Classic’s native token, LUNC, experienced an astounding 45% price increase, erasing a zero from its price. This significant market movement is directly linked to the approval of a critical proposal concerning USTC minting by the Terra Classic community.
The Decision That Changed the Game
The LUNC community overwhelmingly supported the proposal, with 98.95% voting in favor. The proposal’s primary objective was to implement a 100% Tobin tax on swaps to USTC, thereby halting the process of USTC minting and reminting. This move aimed to prevent new USTC from entering the market and stabilize Terra Classic’s ecosystem.
The Proposal’s Mechanics
The Layer One Task Force (LITF) rapidly implemented a code change introducing a new governance parameter, allowing for the application of the Tobin tax specifically for swaps to USTC. This swift action streamlined the process and effectively ceased all market swapping and minting activities related to USTC on Terra Classic.
Market Reaction and Future Prospects
Following the proposal’s approval, LUNC’s trading volume skyrocketed from an average of $30 million to an impressive $333 million. This surge not only reflects the immediate impact of the proposal but also contributes to a notable 45% cumulative increase in LUNC’s 30-day performance.
Burning for a Brighter Future
The Terra Classic community is now deliberating on another significant proposal to burn 800 million USTC tokens, further indicating a strong commitment to managing the token’s supply and value. Despite some debate, with 54.07% in favor and 30.51% against, the proposal highlights the community’s proactive approach.
Community and Exchange Collaboration
The Terra Luna Classic community has gained considerable support in its token burning efforts, with Binance playing a pivotal role. Binance’s recent burn of over 1 billion LUNC tokens illustrates a solid partnership between crypto exchanges, validators, and the community, all working together towards a common goal of revitalizing the Terra Classic ecosystem.