Terra (LUNC) Prepares for Supply Shock As Court Orders Terraform Labs to Burn Tokens

The Terra Classic community is preparing for a supply shock that the LUNC coin could soon face. This is based on a court settlement that has mandated Terraform Labs to burn the tokens in their possession.

The Terra Classic (LUNC) community is preparing for a major supply shock that could soon propel the coin to new heights. This development is unfolding as part of a court settlement that mandates Terraform Labs to burn the LUNC tokens in their possession. The deadline for this burn is approaching, and if Terraform Labs fails to comply, they will be subject to a fine.

According to the SEC, the crypto firm is required to burn or destroy the private keys in their possession that lead to wallets containing these LUNC coins. This burn is expected to occur this week, considering the deadline.

In anticipation of the burn, members of the Terra Classic community are also being advised to withdraw their assets that are currently locked on the Shuttle Bridge. This bridge will be closed during the LUNC burn and will never be reopened.

The imminent LUNC burn by Terraform Labs is certainly a positive development for the coin, as it could generate much-needed bullish momentum and lead to a significant price surge. This also aligns with the community’s goal of removing as many coins as possible from circulation to revive LUNC.

The community believes that this deflationary mechanism could help propel the coin back to its current all-time high (ATH) of $119. Data from LUNC Metrics reveals that 135.54 billion coins have been burned since these token burns began on May 13, 2022. Furthermore, 303.6 million coins have been burnt in the last seven days.

However, the community still has a long way to go, considering that LUNC still has a circulating supply of 6.76 trillion.

Besides the LUNC burns, the Terra Classic community has undertaken several other initiatives to help revive the coin and restore it to its former glory. This includes drafting proposals to enhance the LUNC ecosystem and promote the coin’s adoption.

The latest proposal is put forth by OrbitLabs and aims to remove the forked mainline modules from the Terra Classic blockchain. This proposal argues that doing so will enhance maintainability, reduce technical debt, and align with the broader Cosmos ecosystem.

OrbitLabs provides a detailed overview of the current state of the LUNC ecosystem to demonstrate the need for this proposal. They highlight that the Terra Classic codebase utilizes several forked versions of Cosmos modules to cater to its unique features.

As a result, the codebase has diverged from the upstream modules and maintenance costs have increased.

This new approach will ensure that the Terra Classic blockchain is up-to-date with the latest securities and features developed by the Cosmos team. This will significantly reduce maintenance costs and time.

At the time of writing, LUNC is trading at around $0.0000925, down over 2% in the last 24 hours, according to data from CoinMarketCap.

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