Can LUNC Burn Schemes Revive the Coin’s Value After Terra’s Collapse?

by BSC News

October 6, 2022


Members of the LUNC community are holding on, in hopes that burning schemes by a variety of platforms will restore the coin's value over time.

Saving LUNC by Burning LUNC

After the infamous collapse of the Terra Ecosystem which led to its LUNA coin's massive inflation and price crash, Binance introduced regular burns on its exchange to bring down the circulating supply of the subsequent LUNA Classic (LUNC) coin. More platforms have now made new commitments to deploy mechanisms that will help remove more LUNC coins from circulation.

The latest protocols to raise the LUNC Community's hope of a price rebound include GameFi metaverse MetaRivals and decentralized research organization KajLabs Foundation.

MetaRivals unveiled two gameplay concepts dedicated to burning LUNC coins -- #Mint2Burn and #Play2Burn. Through Mint2Burn, the platform proposes to use up to 12% of proceeds from Non-Fungible Token (NFT) sales to buy back and burn LUNC.

MetaRivals also plans to launch the public test of its Metaverse game later this year, while the game’s full launch is scheduled for Q1 of 2023. The game will be a PlaytoEarn community-backed initiative with 12% of a player's returns going to a #Play2Burn Fund, which would then be used to buy back and burn LUNC weekly.

BSCNews reached out to Prince Pratap Singh, the Chief Operating Officer (COO) at MetaRivals. He thinks that LUNC is far from being a dead coin.

"We believe LUNC still has a lot of fuel. It may sound unrealistic for now, but we know that 'Community is the King.’ LUNC and its utilities can no longer be held back by the project team's plans. Instead, if everyone feels an allegiance to the coin, it can grow in all directions, like a true example of Web3. As new projects jump in, more exchanges support burning, and more users accept LUNC in their daily lives, it will grow a lot and may climb back to a top 5 coin," Singh said.

On its part, KajLabs, owner of the Lithosphere Interoperability Protocol, has pledged to burn about 2.5 trillion LUNC tokens through its Finesse game. KajLabs announced that it would allocate between $50 million to $100 million to achieve the massive burn. According to a press release, KajLabs will launch the first Finesse game series on Dec. 18.

A Twitter user with the handle @KenchadzeLeri captured the mood of the larger LUNC community about the projected burns, stating:

“Sounds too good to be true! That’s a big chunk of circulating supply! But if it is true, then we will see some serious price action for the #lunc #LUNCCOMUNNITY.”

According to CoinMarketCap, LUNC has a circulating supply of 6.2 trillion coins. At its all-time high, the parent LUNA token was valued at $119.18. The value has since plunged to just under $0.0003 as of press time.

Would more platforms joining burning schemes by Binance, MetaRivals and KajLabs send the price of LUNC back to its previous heights? Time will tell.