Terra Classic (LUNC) Community Braces for Potential Supply Shock as Token Burn Deadline Looms

The Terra Classic community is bracing for a potential supply shock that could impact the LUNC coin, driven by a recent court settlement mandating Terraform Labs to burn their tokens.

The Terra Classic community is eagerly anticipating a potential supply shock that could significantly impact the LUNC coin. This development stems from a recent court settlement that mandates Terraform Labs to burn their tokens.

As part of a $4.5 billion settlement with the US Securities and Exchange Commission (SEC), Terraform Labs is legally bound to carry out LUNC burns before the end of the month or face a fine. The SEC has instructed the company to destroy private keys for wallets holding these LUNC coins.

With the approaching deadline, the LUNC burn is expected to occur this week, prompting Terra Classic community members to withdraw their assets from the Shuttle Bridge, which will be permanently closed during the burn.

This forthcoming burn is widely regarded as a positive development for the coin, as it is expected to generate bullish momentum and trigger a significant price surge. The burn aligns with the Terra Classic community's broader objective to reduce the coin's supply and revive its value.

The community believes that this deflationary measure could propel the coin back to its all-time high of $119. Notably, since LUNC burn operations began on May 13, 2022, data reveals that 135.54 billion coins have been incinerated, including 303.6 million in the past week. However, the community faces a monumental task, as the current circulating supply remains at 6.76 trillion.

In addition to token burns, the Terra Classic community has undertaken several measures to rejuvenate the coin and restore its former glory. One such initiative is a proposal by OrbitLabs to remove forked mainline modules from the Terra Classic blockchain.

OrbitLabs argues that this step will enhance maintainability, cut technical debt, and synchronize with the broader Cosmos ecosystem. OrbitLabs elaborated on the necessity of this proposal by highlighting the issues within the LUNC ecosystem.

The Terra Classic codebase has diverged from the upstream Cosmos modules due to its unique features, leading to increased maintenance costs. This new approach aims to keep the Terra Classic blockchain updated with the latest security and features from the Cosmos development team, significantly reducing ongoing maintenance costs and efforts.

At the time of writing, LUNC is trading at approximately $0.0000925, down more than 2% in the last 24 hours, according to CoinMarketCap data.

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