During an AMA with the Terra Classic community on October 23, developer Tobias Andersen, AKA Zaradar, answers questions in a clip posted today by Terra Rebels about effective Terra Luna Classic (LUNC) burns.
Zaradar does not believe it is a higher burn tax rate.
The answer, according to Zaradar, a Terra Classic core developer with the Terra Rebels, is a confluence of elements that include reviving economic activity along the chain, enabling swaps once more, earning taxes, and allowing users to pay lower burn costs.
“It’s getting the economic engines running, again, getting the swap system running, getting people to generate taxes and pay smaller burn fees … because that will inherently end up burning things a lot faster,” said the developer.
Although the developer claims it would be slow for the first few years, he believes that if the chain can attract real-world use cases, the network could burn the excess LUNC supply almost at the rate the Terra ecosystem crashed in May (a matter of days) (a matter of days).
“And I think, you know, it will probably be slow for the first few years,” said Zaradar. “But if we succeed … to reach some sort of tipping point in terms of real-world transactions on the network, eventually, that will start speeding up at a pace that might eventually equate to the crash itself, at least for a certain period of time.”
Furthermore, the Terra Rebels intend to repeg the defunct TerraClassicUSD (USTC) stablecoin in the future. They also intend to enable swaps once more on the network. According to comments made by Zaradar during the AMA, Max and Alex Forshaw are trying to merge the two USTC repeg ideas.
According to this strategy, USTC would function as the network’s reserve currency, as fxcryptonews reported a week ago. Notably, as USTC is adopted more widely, the algorithmic controls burn LUNC.
The Rebels are also making efforts to restore utility to the chain. As an illustration, the code to enable Inter Blockchain Communication (IBC) again is complete. According to the report, additional projects within the Cosmos ecosystem might embrace LUNC as a payment method to draw in its active community in addition to unlocking locked liquidity through reopened IBC channels.
Additionally, the chain strives to catch up to Terra 2.0 technologically. The Terra Classic network will therefore appeal to these initiatives because it is compatible with the Terra 2.0 decentralised apps (DApps).
The first Terra Classic DApp from the Terra Rebels was released on Saturday; it is a lottery game that gives 26% of its pool to the burn wallet.
The remaining LUNC supply is about 6.8 trillion, with over 24 billion already burned in total and 7.7 billion more due to taxes.