The stable coin LUNA was forced to issue billions of its partner tokens as a result of UST’s de-pegging from the dollar in order to maintain algorithmic equilibrium. Due to this supply glut, billions of dollars worth were erased in a matter of days, leaving many investors in an unpleasant situation.
They anticipated Terra’s response, which would be to burn some of the excess LUNA to restore the peg and, in turn, the value of their currency (LUNA).
This was replaced by the announcement of a hard fork, which would designate LUNC as the originating token with the initial supply and stablecoin coupling and create a new token, LUNA, with a supply of 1 billion and no stablecoin coupling.
The hard fork was released on May 28th with the majority of validators voting in favor of it. However, despite the plan being supported by the majority of validators, the majority of token holders increased their demand to burn the excess supply instead.
The newest and largest metaverse ever created is featured in a teaser video just released by StarShip.
With a buildable area of 32,000 square kilometers and the new Unreal 5 engine, the MetaUniverse offers an unrivaled opportunity for long-term growth and expansion.
What This Means for Terra Luna Classic (LUNC)
According to the press release, StarShip’s partnership with LUNAC has enabled the cryptocurrency to be used as a payment method inside of its ecosystem. As a result, 1.2 percent of the total amount of LUNC that is received for these payments will be burned by StarShip.
The press release says, “LUNC will be implemented into the StarShip ecosystem as one form of payment within StarShip Universe, burning 1.2% of all LUNC received for these payments.”
Additionally, voters on Sunday approved LUNC Prop 3568, which called for a 1.2 percent burn tax. This will start to reduce the number of current tokens when they are traded, much to the delight of token holders.
It is time to find a useful application for LUNC. A new alliance between StarShip and Luna strengthens the foundation of each ecosystem.