LUNC, which belongs to the controversial cryptocurrency project Terra (LUNA) ecosystem, has come to the fore with its sharp rise in recent weeks. At the time of writing, various factors have caused the coin to depreciate. However, there have been some innovations in its ecosystem. In this article, we will convey the latest developments and price forecast.
LUNC has published a new recommendation
The LUNC community has released a new proposal in which they request centralized exchanges (CEXs) to implement burns in off-chain transactions. While a few exchanges have expressed support for the offer, most plan to implement it only on deposits and withdrawals. So, it looks like mixed decisions have been made on the subject. Specifically, on Thursday, KuCoin hinted at its Q&A event that it will not implement the offer for over-the-counter transactions.
However, the community believes that central exchanges’ support for the 1.2 percent tax cut proposal should include off-chain activities. It’s worth noting that most LUNC events take place at these CEXs. As a result, the implementation of the proposal in off-chain transactions will be effective in burning off the excess supply of LUNC. Notably, the community is getting ready to attend a Q&A event with Binance in less than a week, with plans to increase tax burns.
Terra Labs founder has commented on the latest allegations
On September 14, the South Korean government issued an arrest warrant for Terra Labs founder Do Kwon. The founder was accused of violating market rules. According to the arrest warrant, all six named persons are in Singapore. cryptocoin.com As we have reported, this led to a sudden drop in the LUNC price. The token lost about 15 percent in a short time. LUNC, which was trading at $0.0034 before the news of the arrest warrant, fell to about $0.00027.
Meanwhile, the token has recovered to some extent. After the price drop, the LUNC community said that Do Kwon was in no way associated with the Terra Classic project. Meanwhile, Kwon responded to allegations that he was hiding from the authorities. He explained that he was not in the “fugitive” position as claimed. Kwon said his team is fully cooperating with government agencies and has nothing to hide. He added that his company is in the process of defending itself in multiple jurisdictions.
Developer mentioned potential challenge in LUNC ecosystem
As we mentioned above, LUNC is back in the spotlight after a recent rally after the 1.2 percent tax cut plan surfaced. Will Chen, R&D developer at Terran One and former developer at Terra, believes a bigger challenge lurks for Terra Classic. While Terra Classic claims to belong to the community and is completely separate from Terra’s founder, Do Kwon, Chen poses some key questions such as:
Who are the LUNC whales? Who controls the network? How possessive is the community relative to a few bad actors buying at asymptotic prices? It will be difficult to attract projects to build on Terra Classic until the rebels realize who they are working for.
He also says that the uncertainty of a 66% attack or market manipulation from someone who doesn’t consider LUNC’s interests will make it difficult for developers to project on the Terra network. In light of the 1.2% tax burn plan, which several investors believe may be the only way to recoup their losses, Chen stated that the biggest challenge LUNC may face in the coming months is to clarify incentives. He also noted that LUNC incentives need time to establish itself.
What to expect for LUNC
While it is not known exactly what levels the LUNC token will see, there are positive signs for the network. According to a tweet from LUNC Staking, which provides staking data, more than 566 billion LUNCs have been staked, or 9.64% of the entire 6.9 trillion supply. This shows that 32 billion LUNC have been staked more recently. Staking shows that investors are hopeful, optimistic about LUNC in the long run. Because staking is a long-term move. As a result, it also reduces the selling pressure and circulating supply of the asset. Staking was restored on the Terra Classic network on August 27 as part of the V22 network update.
However, it’s unclear on what scale this will affect the price. Cryptocurrency is also widely affected by macro developments. For this reason, it would be healthy for investors to invest in line with their own research.
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