Kwon shared a public burn address for LUNA in May 21 after he was repeatedly asked by Terra.
The Terra revival program that Do Kwon, co-founder and CEO at Terraform Labs, announced recently received mixed reactions. Many questioned the effectiveness and efficiency of hard forks in reviving fallen prices of LUNA as well as UST tokens. The community suggested that LUNA tokens be burned to make a comeback.
Kwon’s proposal for Terra preservation involves hard forking Terra’s existing blockchain without the algorithmic stabilizecoin and distributing a new version LUNA tokens, based on a historical snapshot prior to the death spiral. However, several cryptocurrency entrepreneurs, including Changpeng “CZ” Zhao, stated that:
“Reducing the supply should be done through burn, not fork, at an older date and abandon all those who attempted to save the coin.”
Kwon shared a public burn address for LUNA in response to a persistent request by the crypto community. This address will burn every LUNA token that is sent to it immediately. It will also reduce the circulating supply.
Kwon reiterated his view two days after the LUNA burning address. He stated that reducing circulating supply of LUNA tokens won’t have any impact on the market price.
Terra founder Terra clarified that the users were not given the burn address for information purposes. He warned against using it.
“I am happy to share information, but would like to clarify that tokens should not be burned unless you understand what you are doing. I cannot understand it.”
The revelation caused more confusion among investors. Cointelegraph reported that LUNA’s insane volatilities is a lucrative opportunity to investors, as many attempt to recoup losses while others look for profitable trades.
Kwon previously confirmed that Terra no longer mints new LUNA tokens. This is why investors believe a burning mechanism can improve LUNA prices due to scarcity.
Investors are advised not to make abrupt financial decisions in the face of an uncertain roadmap to resolution. The master plan for Terra recovery is still under public scrutiny.
Many projects attempted to migrate to other blockchain ecosystems in the wake of Terra’s demise. Near Foundation also played a part in the recent onboarding of Tracer, a Web3 lifestyle and fitness app.
Nicky Chalabi, Near Foundation’s ( NEAR) spoke to Cointelegraph and said that Tracer is a project that aligns with the ecosystem’s core value.
“Projects should be mindful of the needs of the community and users. That’s because it’s the most valuable resource you have.”
Chalabi advised Terra projects to consider the needs of their users, and stated that “that can really define your success.”