Earlier this month, the crypto industry suffered a huge setback after Terra’s algorithmic stablecoin UST depegged from the US dollar and caused LUNA to lose 99.9% of its value.
Shortly after the crash, Terraform Labs CEO Do Kwon proposed a recovery plan for the Terra ecosystem. It focused on forking the current chain, abandoning the UST, and creating a new token that will be distributed to investors based on the losses they suffered from the catastrophic event.
Do Kwon Shares Burn Address
The proposal was met with skepticism from members of the crypto community who suggested that Terra should burn LUNA instead to reduce the circulating supply of the asset.
As community pressure continued to mount, with the #LunaBurn hashtag trending on Twitter, Kwon decided to fulfill the wishes of the people on Saturday, May 21.
He shared a burn address for LUNA, which would automatically burn any LUNA token sent to it and effectively reduce the circulating supply in the market.
Do Kwon turns around
Interestingly, Kwon tweeted two days later, sending LUNA tokens to the burn address he sent earlier will do nothing to improve the state of the digital asset. He then advised LUNAtics (the nickname of LUNA investors) not to send their tokens because they would only lose them.
“To clarify, as I’ve noted multiple times I dont think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens. Want there to be no confusion whatsoever,” Kwon said.
Although he claimed he didn’t want to cause confusion, publicly sharing an engraving address and advising against sending tokens to the engraving address two days later had already caused confusion. Highlighting this, one user asked Kwon why he shared the burn address in the first place since he claimed it was unnecessary.
He replied, saying:
MEXC Pushes Forward With LUNA Burn Plans
Meanwhile, Singapore-based crypto exchange MEXC Global plans to initiate a LUNA buyback and subsequent burn. The exchange intends to use the fees generated from LUNA/USDT spot trades to purchase LUNA in the secondary market, which will then be burned. However, the execution of the plan will be determined by the outcome of community votes.
“MEXC is delighted to offer a special relaunch plan dedicated to the LUNA community. We need your decision to decide whether we should repurchase LUNA and proceed with the LUNA burn to reduce the circulation of LUNA in the market,” the exchange said.
