The collapse of Terra has affected many projects and has shifted to existence in various blockchain ecosystems. Near Foundation also played its part by onboarding Tracer, a lifestyle app, and Web3 Fitness. Niki Chalaby of Near Foundation highlighted that projects like Tracer seek to align with the core values of the ecosystem, stating:
“Projects should look to the interests of their community and users because, in the end, it’s the most valuable thing you can have.”
The co-founder and CEO of TerraForm Labs recently announced the Terra revival plan and there have been mixed reactions to their plan. Many of them have questioned the effectiveness of a hard fork in reviving the lost price of the Tera (LUNA) and TeraUSD (UST) tokens. and some even recommended burning Luna as the most plausible way to effectively return
Whereas the revival process of Kwon involves hard forking of the existing Terra blockchain without the involvement of algorithmic stablecoins. And redistributing the new version of the LUNA token to investors relies on a snapshot history prior to the death spiral of the stablecoin.
Opinion on the revival plan of cryptocurrency entrepreneur Changpeng “CZ” Zhao, quoting:
“Supplies should be burned, not forked out of date, and everyone trying to reuse the coin should be discarded.”
In response to requests from the crypto community, Kwon publicly shared the burn address for LUNA on Saturday. Helping them burn the LUNA tokens immediately upon receiving the LUNA tokens at the given address effectively reduces the circulating supply of LUNA tokens. And it doesn’t have much effect on the market cap, as you will lose your tokens, opined Kwon.
In addition they clarified that the burn address is used for informational purposes only and cautioned against its use:
“Pleased to provide for information purposes but would like to clarify that you shouldn’t burn tokens unless you know what you’re doing- I can’t understand.”
The impact of the revelation has caused further confusion among investors, as LUNA’s insane volatility has acted as a lucrative opportunity for investors. While some try to cover their losses and others keep an eye on profitable trades.
There is no casting of the new LUNA, and the burning mechanism will improve the price of the LUNA due to the reduction. That’s why investors are believing this Kwon’s burning mechanism.