Luna Burn: Will Terra start to burn his stock of LUNA tokens?


Luna Burn: Will Terra start to burn his stock of LUNA tokens? 

Luna Burn: Will Terra start to burn his stock of LUNA tokens? 

Will Terra start to burn his stock of LUNA tokens? 

A Terra Luna burn is one option for the cryptocurrency's revival.

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One proposed approach to aid Luna's recuperation is to destroy its supplies, but is this feasible?

Following the Luna crypto meltdown, the circulating quantity of Luna soared to over 6.5 trillion coins, prompting calls for a Terra Luna to burn to reduce the supply and perhaps improve its value.

Will holders be successful in introducing Luna burns, like they were with Shiba Inu burns in the SHIB community?

Will Terra Luna deplete its stock?

While the current Terra recovery strategy focuses on a Luna fork, some holders have ignored this, finding promise in the existing chain through a Luna burn instead.

Holders expect that by burning the Luna, the scarcity of their coins would grow, bringing the price back to $1. However, given the 1700 percent increase in supply in just a few days, a big burn would be required to recover this price.

Binance CEO CZ seems to like this approach. Since the partial delisting of Luna on Binance, he has maintained constant communication with the Luna team.

Luna burns appear to have begun, or at least the circulating supply is decreasing. From its peak, the Terra Luna supply has dropped by nearly 2 billion Luna.

A Luna burn is not supported by everyone in the cryptocurrency community. Users have questioned where TerraForm Labs or the Luna Foundation Guard would acquire the money to buy and destroy the supply, as some Luna holders have called for them to do so.


Proposal for Terra Luna's Burning

In the current Terra Luna hard fork vote, Luna burning faces a significant obstacle. However, a governance vote for a burning plan is now underway.

A 3 percent burn tax on transactions was proposed on the Luna Research Forums. "Based on our current volume of roughly $3 billion, we could burn around 300,000,000,000 LUNA at the time of making this proposal if we enforced simply a 3% burn tax on each purchase and sell transaction," it claimed.

This idea is currently up for voting on Terra Station. It has currently received 56.5 million votes, however, it is still short of a quorum. This burn proposal doesn't have much time until it fails, as Kwon's idea is already up for a vote.

Of course, even if it fails, Luna Classic - the coin that will be left behind after the fork if it passes - may still be burned. 

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