The LUNC community is nervous because they are waiting for a large burn of USTC and LUNC tokens, which is what a U.S. court ordered because of Terraform Labs’ (TFL) Chapter 11 bankruptcy case.
Although the exact amount of the burn remains unproven, community members speculate that it could exceed 1 billion USTC and 275 billion LUNC tokens.
In a post on September 9, a famous validator named HappyCattyCrypto shared his research and said that the burn could hit these huge amounts, which is in line with how bankruptcy works. Terra Finder’s transaction data reveals that TFL has already removed more than 2.58 billion LUNC from the shuttle bridge since its reopening.
Terra Luna Classic Market Impact
The community is also requesting the relocation of Mirror Protocol and Anchor Protocol contracts through governance, following the example of the Risk Harbor contracts. These funds are in USTC and LUNC, two coins that are part of the Columbus-5 chain.
The court and Terra CEO Chris Amani have ordered the burning of all Terra Luna Classic assets. After October 31, TFL will cease operating on the Columbus-5 and Phoenix-1 chains. After this date, it will be harder to do any more burns or transfers.
In accordance with the Chapter 11 settlement with the U.S. Securities and Exchange Commission (SEC), TFL has stated that Proposal 4818 will be the last chain upgrade they make. After this, TFL will no longer support updates. The community will have to take care of any future changes on its own.
Also intriguing are the expected token burns from Mirror Protocol and Anchor Protocol. According to a Commonwealth post, Mirror Protocol will burn more than 480 million LUNC, while Mirror and Anchor Protocol will burn 46 million USTC and 729 million USTC, respectively.
The market improved after LUNC and USTC’s news. The LUNC price rose 5% from its 24-hour low and is now trading at $0.00007537. Trading volume also rose by 27%. USTC has also gone up 10% in the last week and is now selling at $0.01593, even though the number of trades has gone down 8% in the last 24 hours.
