According to an on-chain analytics company SanimentLUNC, the native asset of the former Terra chain, is the subject of great interest from the crypto community, as it is seeing a noticeable increase in related discussions.
🗣️ With the #Terra community passing the 1.2% mark #taxburn initiative for $LUNC on-chain transactions, there has been a noticeable increase in asset-related discussions on social media today. The trending topic is expected to create price volatility in the coming weeks. https://t.co/yZiCxMxHOO pic.twitter.com/2ik50mB3zt
— Santiment (@santimentfeed) September 22, 2022
Its analysts wrote, “With the Terra community’s adoption of the 1.2% tax reduction initiative for LUNC on-chain transactions, there has been a noticeable increase in asset-related discussions on social media today. The trending topic is expected to create price volatility in the coming weeks. .”
As for what this could entail, Santiment predicts that the rise of discussions on social platforms could create price volatility in the coming weeks.
The 1.2% tax cut by LUNC was successfully executed on September 21, after the block height of 9,475,200 was reached. At the time of writing, the price of LUNC is 0.000289 and has decreased by around 4.30% in the last 24 hours. The price has not changed much, contrary to the expectations of many who anticipate an implementation of the tax cut.
All on-chain transactions, including LUNC and USTC, will be subject to a 1.2% tax reduction under Terra governance. This fiscal burn will not stop until there is 10 billion LUNC in total supply. LUNC’s global supply has shrunk by 315,007,189, and the current total supply is around 6.9 trillion, according to burn tracker StakeBin. The Terra community plans to use the tax cut to keep the supply at 10 billion permanently.
Here lies the greatest challenge
Will Chen, former developer at Terra, raises some crucial questions about the future of LUNC: “Who are the LUNC whales? Who controls the network? And how much ownership does “the community” have versus a few bad actors who bought at asymptomatic prices?
He indicated that it might be “difficult to attract projects to build on Terra Classic until the Rebels find out who they are working for.” He also highlighted the need to clarify incentives for blockchain.
As reported by U.TodayGokhshtein referred to the LUNC token as a lottery ticket, like in the classic children’s game of musical chairs.
Gokhshtein also mentioned that LUNC belongs to the community, with half of the members rushing to play, while the other half are those who suffered from the collapse. He thinks it would be an awesome return if the community could find a way to create a legitimate use case.