A proposal to burn the community pool at Terra Classic has been made. Can LUNC get to $1?
A Terra Classic (LUNC) community member has suggested burning all the money in the group’s Oracle Pool, which totals hundreds of LUNC tokens.
Despite being unique and controversial, the concept has surprisingly drawn interest from some community members.
Although introduced a week ago, the initiative still needs to receive the minimum deposit required for a vote.
The proposal was delivered seven days ago with a 255,415 Terra Classic down payment.
The message of proposal 11398 is straightforward: “burn community pool. Caused nothing but stress to burn the sh-t.”
Deposits have reached 299,500 LUNC, but there is still a long way to go before reaching the minimum required deposit of 1 million tokens.
The Terra Classic Community Pool
The Terra Classic community receives funding from the community pool to support initiatives and network development activities.
Governance votes must be obtained before cash can be released. A component of the burn tax, precisely 10% of the 0.2% burn tax, provides the pool with recurring funding.
3.4% of the total supply of the asset, or 235 billion LUNC, is currently in the Terra Classic community pool.
Despite the community’s strenuous efforts, LUNC burns have only recently reached 50 billion tokens, or 0.7% of the total supply.
The incineration of 235 billion tokens would significantly impact the burn project.
Importantly, well-known validator LUNC DAO has drawn attention to the proposal and hinted that they would support it in comments.
Nonetheless, given the absurdity of the suggestion, the comments could only be caustic.
Evidence suggests that the idea would only reach the governance votes if any attempt to eliminate the pool would always summarily rejected for several reasons.
One such justification is the difficulties in providing funding for development initiatives.
Can Terra Classic be Worth $1?
Terra Classic can reach $1. The Burn approach and the New Use Cases can be combined to raise the price of LUNC to $1.
But, because of its extreme stance, the solution is still a mystery.
The price of Terra Luna is $0.000126, which has increased by 2% over the last 24 hours. Observing whether LUNC reaches the $1 threshold in the upcoming month will be intriguing.