The moment of truth for the Terra Luna Classic (LUNC)

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The moment the Terra Luna Classic (LUNC) community has been waiting for is at hand. The long-awaited 1.2% BURN TAX will begin its implementation on September 20-21 and on the 22nd we will have the first results, which will show us the path the LUNC price is likely to take.

What is the 1.2% BURN TAX

The Terra Luna Classic community voted and passed a proposal that will be implemented on September 21-22, whereby any transaction made on the Terra Classic Blockchain will be subject to a 1.2% tax.

That is, an amount of 1.2% of LUNC transacted within the chain will be “burned”, i.e. it will leave the total amount offered, which is currently almost 7 trillion.

The aim of this proposal is to drastically reduce the amount of LUNC offered in order to both make the chain operational and to increase the price of LUNC and bring it close to the levels it had before the total disaster it suffered a few months earlier, when it lost its entire value in one or two nights.

The two schools of thought

There are currently two schools of thought surrounding the upcoming 1.2% BURN TAX.

One that says it will be crowned with failure as the major central exchanges will not apply it for transactions that take place within them (e.g. trading), but only for transactions related to the Terra Classic Blockchain (withdrawals and deposits).

The other school of thought argues that the Terra Luna Classic community will do everything possible to make this proposal succeed, by supporting the central exchanges that have already informed that they will apply the proposal to all their transactions, but also by following any other method that will contribute to “burning” as many LUNC coins as possible.

This is, after all, the only way to make a big financial profit, and also to save those who lost a lot of money from the Terra collapse a few months ago.

Driven by the community VS large whales

Another section in which there are two schools of thought is who is really driving the Terra Luna Classic.

Supporters state that Blockchain is now community-led and has nothing to do with either the destroyer Do Kwon (who is wanted for arrest by South Korean authorities) or the TFL foundation that was leading Terra at the time.

Those who oppose the Blockchain leave hints about who is really behind the LUNC “whales”, i.e. the addresses that hold vast amounts of LUNC and what control they really exert over the Blockchain.

The central exchanges that support

So far 9 exchanges will implement the Terra Luna Classic Burn Tax:

  • Binance,
  • KuCoin,
  • MEXC Global,
  • Lbank,
  • Huobi,
  • Bitrue,
  • CoinInn and
  • Kraken.

However, of these, only Kucoin, MEXC Global and CoinInn will support the Burn Tax on LUNC transactions within their exchange as well.

The… other theory

Over the past few days the price of LUNC has maintained a steady course, with no major fluctuations.

There are those who argue that the reason the price is holding at these levels is precisely to allow large quantities of LUNC to be “burned” once the 1.2% BURN TAX is implemented.

In other words, they suggest that the price is deliberately being kept low and that the large central exchanges have deliberately not yet manifested the implementation of the 1.2% BURN TAX within exchanges so that the big bang will happen once this proposal is implemented.

It makes sense that the lower the LUNC price, the higher the transactions will be, the more LUNCs will disappear immediately and the more the LUNC price will rise sharply.

The moment of truth

As we note in our headline, the moment of truth has arrived. In a few days we will know whether or not this project will succeed or fail.

What is certain is that the cryptocurrency community is watching the developments with great interest. Will LUNC rise from the ashes or will we be talking about another experiment that drove millions of dollars into the trash.

We recall our position: We only invest in cryptocurrencies in amounts we can afford to lose. We read, we study, we inform ourselves and we always make our own decisions. We reiterate, apart from Bitcoin and perhaps Ethereum, all other cryptocurrencies are still too vulnerable and can easily crash in record time.

Watch the evolution of the LUNC BURN here:

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