The Terra Luna Classic community is buzzing with anticipation as validator HappyCattyCrypto has revealed that over 1 billion USTC and 275 billion LUNC tokens could potentially be burned from Terraform Labs (TFL) wallets. This development comes in the wake of the ongoing Chapter 11 bankruptcy proceedings and a court order related to the U.S. SEC case against Terraform Labs. As the community gears up for this massive token burn, prices of LUNC and USTC have already jumped 10%, reflecting a surge in positive sentiment.
Terra Luna Classic Community Prepares for Significant USTC and LUNC Burn
In a recent X (formerly Twitter) post, Terra Luna Classic validator HappyCattyCrypto shared findings from his research into the expected token burn from TFL. According to his analysis, the community could see over 1 billion USTC and 275 billion LUNC tokens burned as part of the Chapter 11 bankruptcy process. This potential burn is seen as a major step towards reducing the supply of these tokens, which could positively impact their prices.
Furthermore, data from Terra Finder transactions shows that over 2.58 billion LUNC have been claimed from the shuttle bridge reopened by TFL, underscoring the significant movement of tokens within the Terra ecosystem.
HappyCattyCrypto also highlighted the need for the community to migrate Mirror Protocol and Anchor Protocol contracts to new code via governance, similar to what has been done with Risk Harbor. These protocols are integral to the Terra Luna Classic ecosystem, with assets such as USTC and LUNC being Columbus-5 native tokens. According to Chris Amani’s statements and court judgments, all Terra Luna Classic assets should be burned, as TFL is set to cease operations on Columbus-5 and Phoenix-1 chains after October 31. After this date, any token burn or transfer will be difficult to execute.
TFL’s winding down includes the final implementation of Proposal 4818, which outlines the last chain upgrade they will support. The settlement with the SEC and the Chapter 11 plan means TFL will no longer support future chain upgrades, marking the end of an era for Terra Luna Classic.
Specific Token Burns: Mirror and Anchor Protocols
According to a Commonwealth post, the total LUNC burn from Mirror Protocol is expected to be 480,404,166 tokens. Additionally, Mirror Protocol could burn 46,556,271 USTC, and Anchor Protocol might see a burn of 729,976,293 USTC. These figures, while significant, are part of a broader effort to reduce the circulating supply of Terra Luna Classic ecosystem tokens.
LUNC and USTC Price Performance
The prices of Terra Luna Classic ecosystem tokens, LUNC and USTC, have been on the rebound amidst the growing positive sentiment in the crypto community. This upward momentum is partially driven by the announcement from Genuine Labs that it will soon proceed with the Tax2Gas upgrade on the chain, pending a few tests.
LUNC has climbed 5% from its 24-hour low, currently trading at $0.00007537. The 24-hour low and high are $0.00007543 and $0.00007906, respectively, with trading volume increasing by 27% over the last 24 hours.
Meanwhile, USTC is trading at $0.01593, up 10% over the past week, with its 24-hour low and high at $0.01532 and $0.01593, respectively. However, USTC’s trading volume has seen an 8% drop in the last 24 hours, indicating mixed market reactions.
The Road Ahead for Terra Luna Classic
As TFL prepares to wind down its operations, the Terra Luna Classic community remains hopeful that the massive token burns will drive a significant reduction in supply and potentially bolster prices. However, the outcome will largely depend on how the migration of key protocols and the final stages of TFL’s operations are managed. With the clock ticking towards the October 31 deadline, all eyes are on the Terra Luna Classic ecosystem and its next steps in this unfolding saga.