The biggest topic on the Terra Classic chain is undoubtedly LUNC burning. During the infamous LUNA collapse, the supply of LUNC skyrocketed to an overwhelming 6.9 trillion units, transforming the once-prosperous Terra ecosystem into a "death spiral." Before this disaster, the supply was a modest 775 million units. The collapse was triggered when UST lost its peg to the US dollar, and the Terra chain began printing LUNA (now LUNC) to burn USTC, trying to restore its $1 peg. But the system couldnât bear the strain and eventually collapsed.
đ USTC Supply Changes
When UST was pegged at $1, its supply was 18.7 billion.
After the collapse, USTC supply dropped to 11 billion, and then to 8.14 billion, as the chain burned USTC while minting more LUNC.
Fast forward to today, the Terra Classic network is manually controlled, and although the earlier automatic processes are no longer in place, the goal remains the same: reduce LUNC supply, revive the ecosystem, and regain the communityâs trust. While the LUNC supply remains high, the Terra Classic community continues its mission of burning tokens, with a key focus on USTC.
âš A Community-Driven Revival âš
While Terra Corporation has abandoned LUNC and USTC, the Terra Classic community and Binance, led by CZ, stepped in to pick up the slack. Under CZâs guidance, the LUNC burn tax was introduced and implemented on the chain. Binance itself has burned 50% of its LUNC trading fees, contributing to the cause.
đ„ The Numbers Speak for Themselves đ„
64.2 billion LUNC have been burned by Binance so far, worth $10.6 million.
Total LUNC burns have reached 135.5 billion, while USTC burns stand at 3.15 billion.
With the ongoing efforts to collect and fix USTC at $1, the Terra Classic chain could automatically start reducing the LUNC supply at a much faster rate. Although current burn volumes arenât yet enough, the communityâs high expectations for future massive burns are fueled by hopes that Terraform Labs will soon burn all remaining funds.
đ A Special Shoutout to CZ and Binance! đ
The Terra Classic community owes a great debt of gratitude to CZ and Binance for their unwavering support. CZ is seen as the natural leader of the LUNC movement, and his efforts have instilled hope in the community for a brighter future.
The road to recovery is long, but with strong community backing and Binanceâs continued support, the revival of LUNC and USTC seems within reach. Stay tuned for more updates as the Terra Classic community fights to bring LUNC back to its former glory!
