- Classy’s Sphere, a top Terra Classic validator, plans to burn 100% of its LUNC tokens earned through commissions until year-end.
- The LUNC burn campaign aims to enhance the value of the crypto asset and calls for other validators to join in the initiative.
Prominent Terra Classic network validator, Classy’s Sphere, is taking the lead in driving a groundbreaking initiative to burn LUNC tokens and revitalize the crypto asset’s value. Through this determined endeavor, Classy’s Sphere intends to burn 100% of the LUNC tokens it earns from operating its node until the close of 2023.
The influential operator of the community validator and a highly followed figure in the crypto realm, Classy, unveiled this progressive development on Sunday, emphasizing the significant impact of extensive LUNC burns in elevating the price of this once-thriving digital asset.
Recognizing a perceived decline in efforts towards the LUNC burn mission, Classy passionately urged fellow validators on the Terra Classic network to recommit to this noble cause. In order to achieve the ambitious goal of burning millions of LUNC tokens, Classy beckoned community members to demonstrate their support by delegating substantial amounts of tokens to Classy’s Sphere validator. A clear correlation was stated: “More LUNC staked with our validator = More LUNC burned,” articulated Classy.
Reaction from the LUNC community has been met with a mixture of responses. However, many community members have applauded this move and expressed their willingness to stake their tokens with Classy’s Sphere. Notably, one community member pledged their support to the validator, asserting that additional “ultra-creative initiatives” would be vital for LUNC to reach its much-coveted $1 price point. Classy concurred, underscoring the necessity of onboarding more layer-1 developments to bolster the dollar value of LUNC.
While skeptics have speculated that Classy’s intentions are solely focused on increasing the voting power of their validator, it is important to note that the validator has previously burned 100% of its commission, as reported by The Crypto Basic. Additionally, analytics platform LUNCDASH reveals that Classy’s Sphere validator currently possesses a voting power of 0.95%, with approximately 9.5 billion LUNC staked.
In a recent update from the official LunaClassic HQ Twitter page, it has been confirmed that the burn rate of Terra Classic’s LUNC tokens is gradually approaching 70 billion. This update divulged that the total LUNC tokens burned now stands at 68,303,850,914, accounting for approximately 0.99% of the total supply. Out of this burned quantity, a substantial 44,789,088,501 LUNC tokens have been dispatched to the burning address.
Token burning exercises are common practices within the crypto space and are implemented to reduce the circulating supply of a specific token. The objective behind such burns is to potentially increase the value of the designated digital asset through heightened market demand. A notable example is the Shiba Inu (SHIB) protocol, which has consistently burned excess SHIB tokens in circulation.
Leading cryptocurrency exchange Binance has been actively involved in this burn campaign, recently facilitating the transfer of 2.65 billion Terra Classic tokens in the 11th batch of the LUNC burn mechanism to a dead wallet. This 11th batch burn attracted a transaction fee of 13.25 million LUNC, which contributed to the overall figure. As of July 1st, Binance’s LUNC burn efforts have surpassed 35.5 billion, including trading fees on LUNC spot and margin trading pairs.