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Friday, January 27, 2023

Do Kwon Has Shared The Burn Address Of LUNA

The recent revival plan of Terra was announced by the CEO of Terraform Labs, Do Kwon- which then received pretty mixed reactions. Most of the analysts were questioning the effectiveness of a hard fork in the revival of the fallen prices of Terra and TerraUSD tokens.

Instead, the entire community recommended the burning of LUNA is the only way to stage a comeback. The proposal of Kwon to preserve the ecosystem of Luna does involve hard forking the currently existing blockchain of Terra without the help of the stablecoin- which would then be redistributed through a new version of the LUNA tokens for investors based on a snapshot taken before the death spiral. 

Do Kwon Has Major Plans For LUNA Comeback

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With the crypto community creating a pertinent request, Do Kwon initially went against his plan and publicly shared a burn address for the token on Saturday. Every single token of LUNA which was sent to this address would be burned immediately- which would then reduce the circulating supply of the LUNA tokens effectively. But, just a couple of days later, Kwon reiterated this point of view that reducing the circulation of LUNA will have no relative impact on the price in the market. He stated that nothing really would happen- except one would be losing their tokens. 

However, this revelation by Do Kwon created more problems than solutions among the investors. As reported by Cointelegraph previously, the insane volatility by LUNA did serve as a lucrative opportunity for the investors as quite a few would be trying to recoup their losses and others would be eyeing profitable trades. 

Do Kwon did previously confirm that Terra was no longer in the business of minting new coins, which was one of the major reasons the investors believed a burning mechanism would be the best choice. The reason is the improving price of LUNA due to increasing scarcity.

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