The Terra Luna Classic community has received significant support from market participants by launching a USTC burn offering. This initiative gained widespread attention among community members following TerraForm Labs’ decision to terminate its operations and burn its remaining assets.
USTC Burn Offer Details
The new USTC burning offering aims to burn a total of 46.55 million USTC through contract migration, focusing on Mirror Protocol-connected wallets. Although these burns attracted attention in 2023, investors outside the community are not excited about the latest news as it has not had much impact on the price for a long time.
A previous token burn bid attempt failed due to insufficient contract balances. Now the community has renewed the issue and increased its priority. TerraForm Labs CEO Chris Amani stated in the meeting with the community that TFL plans to burn all Terra Classic assets.
Amani stated that this approach was implemented for the purpose of security and compliance with current legal requirements. Amani stated, “Incineration would be the best option.”
Market Reaction and Price Changes
After the announcement, the LUNC price increased by approximately 3% to $0.00008976 and trading volume increased by 17% to $26 million. Although LUNC Futures Open Interest also increased by 1%, there was no significant increase in interest in the markets. USTC price rose over 2% to $0.01847, but trading volume fell 4% to $7.01 million.
Recent developments reflect the transformation of the Terra ecosystem, now with the official bankruptcy of Terraform Labs. As of September 30, the company will stop many applications and services. Although this is bad for LUNA Coin, LUNC is already separated from Do Kwon’s team due to the story started by the Terra Rebels. In other words, in the new process, LUNC may now be more successful in getting back on its feet compared to LUNA. However, in the midst of increasing alternatives, we can say that new investors do not care much about Terra-based tokens that have gone bankrupt and turned into a ghost town.
The USTC burning proposal of the Terra Luna Classic community aims to ensure the stability of the ecosystem and narrow the circulation supply. Burning is a strategic step towards removing passive contracts and complying with legal requirements.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
