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HomeCrypto NewsTerraCVita Published White Paper for Terraport; Promises to be a LUNC Furnace

TerraCVita Published White Paper for Terraport; Promises to be a LUNC Furnace

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Yesterday, the independent Terra Classic development group TerraCVita published the white paper for Terraport, their decentralized finance initiative.

The DEX, which promises to burn billions of LUNC every week, is described by TerraCVita as a LUNC furnace.

According to the write-up, the project includes a launchpad where users can fund projects, a lottery game for entertainment, and a decentralized exchange that lets users trade assets on-chain and cross-chain.

Rex Harrison, sometimes known as Rexzy, a senior member of TerraCVita, has frequently marketed the project as a Terra Luna Classic (LUNC) furnace, meaning that it will have a substantial impact on LUNC burns. 

The reason is explained in the white paper that was published yesterday and the related Medium blog post.

The Project Will Burn Billions of LUNC Weekly

The team claims that the Treasury will purchase back and burn LUNC every week using 27% of all fees collected. 

According to the white paper and related Medium blog post, the project’s developers predict it may burn billions of LUNC each week.

 Furthermore, the treasury will also burn TERRA, the protocol’s native token, once a week using 22% of all treasury money. 

This will enhance the token’s scarcity and raise its value over time.

“The treasury will be responsible for reducing the circulating supply of LUNC and TERRA by swapping 27% of the available funds into LUNC and 22% into TERRA, respectively, then sending the assets to the burn address,” the team stated.

“This will make it possible to greatly reduce the amount of TERRA in circulation over time by increasing its value and at the same time reduce the LUNC circulating by performing weekly burns of several billion.”

All Users Holding xTERRA Can Participate in Governance

The maximum token supply for TERRA is 1 billion, with 2% reserved for developers.

TerraCVita has turned over control of the protocol to the community through the TERRA DAO in the meantime. 

As a result, all users can participate in governance by possessing xTERRA, the governance token. 

The team stated that “TERRA holders will receive a counter value of xTERRA usable in governance.”

It is important to note that the team has raised more than $2 million for the project through private TERRA sales. 

The debut of Terraport is anticipated for Q1 2023, most likely following five weeks of public sales.

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