At the Current Terra Luna Classic (Lunc) Burn Rate, It Will Take More Than 5 Years to Remove the First Trillion From Supply

Celsius Network

Members of the Terra community burn LUNC to reduce the token’s circulating supply.

TerraForm Labs is still committed to making investors whole after the collapse of the firm’s ecosystem tokens $UST and $LUNA dealt a devastating blow.

Despite the launch of a new chain and new $LUNA tokens, Terra investors believe that the method is insufficient to compensate them for their losses, as they yearn for a burn.

Meanwhile, Terra now has two $LUNA tokens due to the creation of new $LUNA tokens. While one is known as $LUNA, the other was renamed Luna Classic (LUNC). At the time of writing, both tokens exist side by side.

The Terra team is currently focused on increasing the new LUNA tokens’ value to compensate investors while ignoring LUNC.

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Kwon Creates a Dangerous LUNC Address

Do Kwon, the founder and CEO of TerraForm Labs, posted a burn address on his Twitter page as the Terra community insists that LUNC be burned to reduce its circulating supply from the more than 6.5 trillion in existence.

The address is an inflammable one to which the community can send their $LUNC tokens to reduce the circulating supply of the cryptocurrency and thus increase its value.

LUNC Burns Bitquery Stats

Since the LUNC community burn initiative, the inflammable address has received between 20 million and 60 million old LUNA tokens daily, implying that burning more tokens would require a significant amount of effort and commitment.

According to data from the popular block explorer Bitquery, the Terra community has burned over 650 million LUNC since the initiative began, which is insignificant compared to the token’s total supply of over 6.5 trillion.

Related article: Kraken CEO Defends His Decision to Support Terra 2.0

The Terra Community’s Reaction to the Burns

In response to the slow rate of LUNC burning, the Terra community on Reddit has conducted various analyses on how long it would take investors to burn the entire 6.5 trillion circulating supply.

A user estimated that if the community burns 60 million LUNC per day, it will take approximately 300 years to burn the crypto’s circulating supply successfully.

Meanwhile, it is unclear whether the Terra team will continue participating in the burn program and increase the number of LUNC burns recorded daily. Therefore, the community is in charge of the burn program for the time being.