Understanding Luna Classic (LUNC) and Its Burn Mechanism

The LUNC Burn Initiative

The LUNC burn program emerged as a potential recovery strategy for the collapsed Terra ecosystem.

Following the unfortunate collapse of the Terra ecosystem, those affected by the event devised the LUNC burn program as a means to recoup their losses.

This initiative aims to reduce the total supply to 10 billion tokens.

Investors are encouraging each other to voluntarily send a portion of their LUNC tokens to burn wallets, effectively decreasing the cryptocurrency's circulating supply.

This collective effort resulted in a significant number of LUNCs being burned within a matter of weeks. The community believes that implementing a 1.2% tax burn on all on-chain LUNC transactions could accelerate the token consumption process.

Last month, this proposal was put into action on the Terra Classic network, leading to a dramatic increase in the burn rate. Since the implementation of the 1.2% tax burn, a total of 3.76 billion Luna Classic tokens have been burned.

Earlier this month, the LUNC token experienced a surge in value, driven by anticipation of the community-approved plan to reduce the token's hyperinflated supply.

This "supply burn plan" aims to destroy – or "burn" in crypto terminology – 1.2% of every LUNC transaction on the blockchain. While this mechanism doesn't apply to buying and selling tokens on exchanges, Gate has chosen to voluntarily adopt this supply reduction mechanism.

How the LUNC Burn Works

When the Terra recovery plan introduced Luna 2.0, it effectively achieved a similar outcome to a burn by reducing the supply, albeit through a more drastic approach of restarting the chain. This new chain launched with 1 billion Luna, a substantial decrease from the previous 6.5 trillion.

By burning Luna, holders hoped to increase the scarcity of their coins, potentially pushing the price back towards $1. However, a significant burn would be necessary to restore the price, given the current 1700% surplus in supply.

The 1.2% burn tax is applied in two ways:

On-chain: This includes interactions and wallet transfers Off-chain: This covers transaction fees on centralized exchanges

The 1.2% burn fee, implemented on September 12, applies to all on-chain interactions in LUNC and transfers between wallets. Since its implementation on the Terra Classic network last month, the number of burns has increased dramatically. In total, 3.76 billion Luna Classic tokens have been burned through this mechanism since the 1.2% tax burn was introduced.

Gate's Contribution to LUNC Burning

Gate participates in LUNC burning by repurchasing LUNC and burning it through transaction fees. Gate has also expressed support for the LUNC upgrade and the burning of LUNC spot trading fees. Multiple cryptocurrency exchanges have contributed to the burning of 13.7 billion LUNC from Luna Classic's total supply. As of now, Gate has established itself as a significant contributor to this effort.

Recent Performance of Luna Classic (LUNC)

At present, the market price of LUNC stands at $0.00017739 per token. For the most up-to-date price information, you can check the live price on Gate's platform.

How to Acquire Luna Classic (LUNC)

To purchase Luna Classic (LUNC) on Gate, follow these steps:

1. Sign in to your Gate account and navigate to the trading section.
2. Use the search function to find "LUNC" and view the available trading pairs, such as LUNC/USDT.
3. In the spot trading interface, enter the amount of LUNC you wish to buy. You can choose between a limit order, market order, or stop-limit order. For simplicity, let's use a market order as an example. Confirm your purchase by clicking the buy button. Your acquired LUNC will then appear in your spot wallet.

For a more detailed guide on purchasing LUNC tokens, refer to Gate's comprehensive tutorial.

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