LUNA Jumps as 273M Tokens Burned Despite Do Kwon Opposing the Idea
Terra (LUNA) holders have sent over LUNA 273m to the burn address provided by the Terraform Labs founder and CEO Do Kwon in a bid to reduce the token supply – an idea that Do Kwon is not in support of.
Upon request from some community members, the CEO shared a burn address over the weekend. Subsequently, a token holder shared the address on Terra’s Research Forum, a space where developers and users discuss Terra protocols, asking the community to burn a portion of their tokens.
“Let’s go vultures, show that you really care about Luna and take the initiative and burn some of your coins, aren’t you guys true supporters,” the user said.
Many in the community showed support for the plan, with some claiming that they have already sent some tokens to the address. “Great. Burned a few K just for the culture,” one user said.
As of Monday morning (7:15 UTC), the burn address has received 273.35m tokens (USD 52,000), according to Bitquery.io. Considering that LUNA’s current supply is over 6.5trn, the burned amount is trivial. Still, it seems to have positively impacted the coin’s price.
At the time of writing, LUNA is trading over USD 0.00019, up by more than 19% over the past 24 hours. It almost doubled since Saturday. In either case, the price is down almost 100% this month.
In cryptocurrency, burning is the process of taking a certain amount of tokens out of circulation to increase the value of the existing tokens. This is done by sending the desired amount of tokens to a wallet address that can only receive tokens but not transfer them.
Major crypto exchange Binance CEO Changpeng Zhao (CZ) is among the more notable crypto players that have supported the burning idea, arguing that “forking does not give the new fork any value. That’s wishful thinking” – referring to an idea to hardfork Terra to Terra2.
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin,” he has previously said.
Do they really think they can fork BTC at the snapshot on Nov 18, 2021, and the new fork will have the new BTC at $68,000 (the price on that day)?— CZ 🔶 Binance (@cz_binance) May 14, 2022
Meanwhile, Do Kwon has stressed that he is against burning the coins. “To clarify, as I’ve noted multiple times i dont think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens,” he said.
Do it if you want to, i just cant logically understand it.— Do Kwon 🌕 (@stablekwon) May 23, 2022
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