Terra Luna Classic validator claims that the community can burn over 1 billion USTC and 275 billion LUNC from TFL wallets, prices rise 10%.
The Terra Luna Classic community eagerly anticipates a significant USTC and LUNC burn by Terraform Labs (TFL), as mandated by the Chapter 11 bankruptcy proceedings and a court order in the U.S. SEC case.
Although the exact amount of Terra ecosystem tokens to be burned is still uncertain, some members of the Terra Classic community estimate it to be over 1 billion USTC and 275 billion LUNC tokens.
Terra Luna Classic Community Prepares for USTC & LUNC Burn
Validator HappyCattyCrypto shared details on September 9 through an X post regarding his research into the anticipated token burn by TFL.
According to him, the burn could involve over 1 billion USTC and 275 billion LUNC tokens as part of the Chapter 11 bankruptcy process.
As per Terra Finder transaction data, more than 2.58 billion LUNC have been reclaimed from the shuttle bridge reopened by TFL.
Additionally, the validator encouraged the community to migrate the Mirror Protocol and Anchor Protocol contracts to new code via governance, similar to the migration done for Risk Harbor.
The funds tied to these protocols are Columbus-5 native assets, USTC and LUNC.
As noted by Chris Amani and according to the court ruling, all Terra Luna Classic assets should be burned. TFL will cease interacting with the Columbus-5 and Phoenix-1 chains after October 31, making token burns or transfers difficult beyond the court-approved deadline.
According to Terra Money, “As TFL begins winding down its operations, Proposal 4818 will be the final chain upgrade that we implement. Pursuant to TFL’s settlement with the SEC and implementation of its proposed Chapter 11 plan, TFL will no longer be able to support future chain upgrades.”
As stated in a Commonwealth post, the Mirror Protocol burn will amount to 480,404,166 LUNC.
Furthermore, 46,556,271 USTC can be burned from Mirror Protocol, while 729,976,293 USTC can be burned from Anchor Protocol.
LUNC and USTC Price Performance
Tokens in the Terra Luna Classic ecosystem, LUNC and USTC, have shown a rebound from recent lows due to positive sentiment within the crypto community.
This momentum followed the announcement by Genuine Labs that the Tax2Gas upgrade would soon be implemented after testing.
LUNC’s price rose 5% from its 24-hour low, now trading at $0.00007537. The 24-hour low and high were $0.00007543 and $0.00007906, respectively, with a 27% increase in trading volume over the last 24 hours.
Meanwhile, USTC’s price is $0.01593, reflecting a 10% gain over the past week. The 24-hour low and high were $0.01532 and $0.01593, although trading volume dropped 8% in the same period.
