LUNA jumps after 273 million tokens got burned in an address that was provided by the Terraform Labs founder Do Kwon, in a bid to try and reduce the token supply which was an idea that he didn’t support so let’s have a closer look today in our latest cryptocurrency news.
Do Kwon shared a burn address on the demand of community members and one token holder even shared teh address on the Terra Research Forum which is a space where developers and users discuss the protocols asking the community to burn the portion of the tokens:
“Let’s go vultures, show that you really care about Luna and take the initiative and burn some of your coins, aren’t you guys true supporters.”
Most in the community showed support for the plan and some claimed that they already sent some tokens to the address. As of Monday, the burn address received 273 million tokens, and considering the LUNA’s supply is over $6.5 trillion, the burned amount is trivial but seems to have a positive impact on the coin’s price since LUNA jumps after the burn. LUNA is trading at $0.00019 or up by 19% over teh past 24 hours. It doubled since Saturday but the price is still down by 100% this month.
The burning process works by taking a certain amount of tokens out of circulation to increase the value of teh existing tokens. This is done by sending the number of tokens to a wallet address that can receive tokens but not transfer them. Crypto exchange Binance CEO Changpeng Zhao is among the biggest crypto players that supported the burning idea and argued that forking doesn’t give the new fork, new and more value. He added:
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.”
In the meantime, Do Kwon stressed that he is against the idea of burning the coins:
“To clarify, as I’ve noted multiple times i dont think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens.”
Kwon’s latest revival plan suggests forking the network into a new chain without the TerraUSD stablecoin whose de-pegging led to a failure of the entire crypto ecosystem.
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