According to the on-chain analytics firm sentimentLUNC, the parent asset of the old Terra Chain, is facing high interest from the crypto community as it is seeing a significant increase in related discussions.
️ with #terra Community passing 1.2% #taxburn initiative for $LUNC On-chain transactions, today there has been a significant increase in discussions related to assets on social. The trending topic should generate price volatility in the coming weeks. pic.twitter.com/2ik50mB3zt
— sentiment (@santimentfeed) 22 September 2022
Its analysts wrote: “With the Terra community passing a 1.2% tax burn initiative for LUNC on-chain transactions, there has been a significant increase in asset-related discussions on Social today. Trending topics should create price volatility in the coming weeks ..”
What this could lead to, Sentiment predicts, could lead to price volatility in the coming weeks due to increased discussions on the social platform.
The 1.2% tax burn by LUNC was successfully executed on September 21, when the block highs reached 9,475,200. At the time of writing, LUNC is priced at 0.000289 and is down by around 4.30% over the past 24 hours. Contrary to the expectations of many anticipating tax-burn implementation, the price hasn’t changed that much.
All on-chain transactions including LUNC and USTC will be subject to a 1.2% tax burn under Terra Governance. This tax burn will not stop until there is 10 billion LUNC in total supply. According to the Steakbin burn tracker, the total supply of LUNC has decreased by 315,007,189, and the current total supply is about 6.9 trillion. The Terra community is anticipating using the tax burn to sustain a supply of 10 billion.
here is the biggest challenge
Does Chen, a former developer at Terra, raise some important issues regarding the sustainability of LUNC: “Who are the LUNC whales? Who controls the network?” And how much ownership does the “community” have relative to some bad actors who have bought in at asymptomatic prices?
He indicated that “it can be difficult to attract projects to build on the Terra Classic unless the rebels know exactly what they are working for.” He also highlighted the need to clarify the incentives for blockchain.
As U.Today reports, Gokhshtein referred to the LUNC token as a lottery ticket, as in the classic musical chair game for kids.
Gokhshtein also noted that LUNC is community-owned, with half of the members jumping to gamble, while the other half are those who suffer collapse. He believes it will be an impressive comeback if the community can find a way to create a valid use case.