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Token burnings are extremely important price catalysts for meme coins. They are also a ghost town for some. The collapse of Terra has devastated the entire crypto market, but the wreckage still shows signs of life. The abandoned old network by Terraform Labs is being resurrected by a group of victims and speculators.
800 Million Burn
Vegas, a prominent member of the Terra Luna Classic community, proposes the return of 800 million USTC tokens from a wallet connected to the Ozone Protocol to the Terra Luna Classic community pool. However, some prominent members like Alex Forshaw believe that these tokens should be sent to the burn address instead of being returned to the community pool.
Vegas, a former member of the Terra Rebels development group, presented a governance proposal to the Commonwealth forum for discussion. Due to the Ozone Protocol project not actively following the proposed development plan, they demand the return of 800 million USTC to the Terra Luna Classic community pool.
According to the proposal, the Ozone protocol was initially proposed by Do Kwon, a co-founder of Terra, and was created using funds provided by the community pool. Despite the significant interest in Ozone V1 and Ozone V2, they did not succeed.
Alex Forshaw, a former Terra Rebels and Terra Classic Revival Roadmap co-author, said that burning the idle USTC tokens is the best option rather than sending them to the community pool. According to Forshaw, validators and stakers will discard the USTC team’s work. However, burning these USTC tokens will strengthen the narrative of repeg (reestablishing the price at $1) or the community can burn a portion and send a portion to the community pool.
Will LUNC and USTC Price Reach $1?
In the long term, achieving the $1 target, especially for LUNC, seems impossible. All holders would need to burn most of their tokens to reduce the trillion-token supply. Who would do that? If everyone does not burn almost all of their tokens, the price can never reach $1 with the current circulating supply. Therefore, such a target is beyond the realm of possibility for LUNC.
As of the time of writing, USTC is trading at $0.016. If a significant portion of the 9.7 billion supply is burned, the $1 target or repeg can be achieved. However, this would require burning the remaining 9.5 billion (approximately) tokens, excluding the 157 million USTC. If 800 million USTC is burned, it could provide support for the price around the $0.02 region as the supply would decrease by approximately 10%. But for now, it is not more than that.
