Luna Classic (LUNC) is seeing an uptick in trading activity although this has not yet had a positive influence on the project’s price, as seen in the chart above. LUNC has been seeing price drops all through October, this but this might could change moving forward.
At the time of writing, the token’s price is $0.000234, and while this is far from its lowest point, it might be its new bottom.
Terra Classic community reduced tax burn to 0.2%
Following the crash of the Terra blockchain back in May of this year, the project saw a hard fork that split it into two. The original Terra blockchain was renamed to Terra Classic, with its native token becoming Luna Classic (LUNC).
After the token’s crash, a large portion of the community simply abandoned the project. Those who remained, however, decided to start over, and now, they are doing everything in their power to bring LUNC back to greatness. One part of that includes token burning that Binance has been conducting, as the exchange and the project agreed to burn 1.2% of each transaction as a type of tax.
Token burning will reduce the circulating supply and bring value back to the coin through its own scarcity. However, after a recent community vote, it was decided that the tax rate would be reduced from1.2% to 0.2% since the earlier rate was accepted to causing a decline in the network activity, according to Binance’s announcement.
So far, Binance has burned over 19.22 billion LUNC, with 4.39 billion burned just fourteen days prior. Some have estimated that Binance’s burning program would lead to 1 trillion LUNC burned per year by the exchange alone, even if the amount set to be burned was only 0.1% of each transaction./
A plan to bring LUNC back onto the crypto stage
Following the situation in May, Terra has lost the trust of a large portion of the crypto community. However, there are those who believe that it remains a good project, and they are ready to work on its revival.
Its developers recently unveiled a 4-year plan to revive the LUNA ecosystem, called the Terra Expedition. According to the proposal, “The Terra Expedition is a 4-year program aimed at growing the Terra ecosystem through a series of initiatives with 3 main objectives, namely: Incentivising developers to build on Terra, Deepening liquidity on Terra, and Onboarding users to Terra.”
Luna Classic price prediction
So far, the news has not done much good to the LUNC price. The price did see a small rally yesterday, October 23rd, when it went from $0.0002267 to $0.0002441, but since then, it has corrected again to $0.000232, where it sits at the time of writing.
Analysts believe that the project has a long way to go even to return to the pre-crash levels, and the fact that it lost almost all of its value within 48 hours says a lot about the decline in the investors’ trust and confidence levels. The last few months have brought both spikes and plunges, and it is worth noting that there is still a major question about the project’s original co-founder, Do Kwon, who is believed to be on the run from the authorities.
LUNC developers and the community are trying to raise value through token burns through and sound planning, which includes building utility and restoring the confidence of financial Investors.