Tuesday, February 27, 2024

Do Kwon Shared A Luna Burn Address But Warned Against Using It

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Do Kwon shared a LUNA burn address but warned against using it despite the persistent request from the community. Kwon went against his initial plan and posted the address so let’s read more today in our latest cryptocurrency news.

The recent Terra revival plan by Do Kwon, got some mixed reactions as most questioned the effectiveness of the hard fork in reviving the falling prices of LUNA and UST tokens. The part of community recommended burning LUNA tokens as the best way to achieve a comeback. Kwon’s proposal to preserve Terra’s ecosystem involves a hard fork of the existing terra blockchain without the algorithmic stablecoin and the redistribution of the new version of the LUNA tokens to investors based on the historical data before the death spiral however the crypto entrepreneurs like Changpeng Zhao opined:

“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.”

Upon the requests from the community, Kwon went against his initial plan and shared a burn address for LUNA so each token sent to this address will be burned immediately and will reduce the circulating supply of the tokens. Two days after sharing the LUNA burn address, Kwon added his point of view that reducing the supply of the tokens will have no impact on the market price because “nothing happens except that you lose your tokens.”

The terra co-founder noted that the burn address was shared with users for information purposes only and warned against using it:

“Happy to provide for information purposes but want to clarify that you should not burn tokens unless you know what you are doing – I for one cannot understand.”

However, the revelation resulted in confusion among investors. LUNA’s insane volatility serves as a lucrative opportunity for the investors with most trying to recoup their losses and others eying some profitable trades. Kwon confirmed that Terra is no longer minting new LUNA tokens which is one of the main reasons why investors think a burning mechansim will improve LUNA’s price because of scarcity.

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Investors were advised to refrain from making abrupt financial decisions with the master plan for Terra’s revival continuing to be under public scrutiny. As a direct consequence of the Terra collapse, plenty of projects looked to migrate to a different blockchain and the NEAR foundation played its part by onboarding Tracer which is a web3 fitness app.

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