In response to a repeated demand from Terra group, Kwon went against his initial plans and shared the address of a burning for LUNA on the weekend.
The most recent Terra revive plan presented in the name of Do Kwon Co-founder of Terraform Labs and the CEO. Terraform Labs, received mixed responses as some questioned the efficacy of a hard fork in bringing back the declining costs for Terra ( LUNA) and TerraUSD (UST) tokens. Instead, a segment of the community favored the burning of LUNA to be the best and most likely method to bring back Terra.
Kwon’s plan to protect Terra’s ecosystem Terra ecosystem is to hard fork the current Terra blockchain, without the stablecoin’s algorithmic stability and distributing the new version of LUNA tokens among investors based on an historic snapshot prior to dying. However, several crypto-related entrepreneurs, such as Changpeng “CZ” Zhao, claimed that
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.”
In response to a constant demand from the crypto community, Kwon went against his original plan and announced the burn address for LUNA on the weekend. Each LUNA token that is sent to the address will be destroyed immediately, effectively reducing circulation of LUNA tokens.
A few days after releasing with the world that he had shared LUNA burning address Kwon repeated his position that cutting down the amount of circulating LUNA tokens would have no effect on the price of the market in his statement that “nothing happens except that you lose your tokens.”
Terra’s co-founder clarified that the Terra co-founder of Terra has clarified that the address for burning was only shared with users for informational purposes, and warned against using itfor:
“Happy to provide for information purposes but want to clarify that you should not burn tokens unless you know what you are doing – I for one cannot understand.”
The revelation, however, caused an increase in confusion for investors. As Cointelegraph previously stated, the incredibly volatile LUNA can be an profitable chance for those who invest who are trying to make up for their losses, while other investors look to make money from trades.
Kwon has confirmed previously that Terra is no longer producing new LUNA This is among the primary reasons why investors believe that a burning mechanism could boost the value of LUNA due to its the scarcity.
In the midst of a lack of clarity on the resolution investors are advised not to from taking rash financial decisions while the plan of action for Terra revival remains subject to public scrutiny.
In the same vein: Near Protocol picks up the slack, and onboards Tracer following Terra’s demise
As a direct result of the collapse of Terra, many initiatives sought to move to new blockchain ecosystems battling for their lives. Near Foundation, too, was a part of the solution by joining Tracer which is an Web3 life and fitness application.
In an interview with Cointelegraph Near Foundation’s Nicky Chalabi highlighted that projects like Tracer strive to be in line with the core values of the ecosystem and that
“Projects must watch the interests of their community and users because, in the end, that’s the most valuable thing you have.”
Chalabi also recommended Terra projects to move only in the context of their communities and users in a statement that reads “That can actually define your success.”