The collapse of Terra affected several projects and migrated to different blockchain ecosystems to survive. Near Foundation has also played its part by integrating Tracer, a lifestyle application, and Web3 fitness. Nicky Chalabi of Near Foundations pointed out that projects like Tracer seek to align with core ecosystem values, saying:
“Projects must watch the interests of their community and users because, in the end, that’s the most valuable thing you have.”
The co-founder and CEO of Terraform Labs recently announced Terra’s relaunch plan and received mixed reactions for his plan. Many of them questioned the effectiveness of a hard fork to revive the lost price of Terra (LUNA) and TerraUSD (UST) tokens. And it was also recommended by a few to burn LUNA as the most plausible way for an effective return
Whereas the revival process of Kwon involves hard forking of the existing Terra Blockchain without the involvement of algorithmic stablecoin. And redistributing the new version of the LUNA tokens to investors, depending on the snapshot history before the death spiral of stablecoin.
Crypto entrepreneur Changpeng “CZ” Zhao’s views on the stimulus package, citing:
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to reuse the coin.”
Kwon publicly shared a burn address for LUNA on Saturday, in response to inquiries from the crypto community. Helping them burn LUNA tokens immediately after receiving them at the given address effectively reduces the circulating supply of LUNA tokens. And it doesn’t impact the market price more because you’ll just lose your tokens, Kwon said.
In addition to this he also clarified that the burn address is just used for information purposes and warns against its use of it:
“Happy to provide for informational purposes, but just want to clarify that you shouldn’t burn tokens unless you know what you’re doing – I for one can’t understand.”
The effect of revelation has created more confusion among investors, as LUNA’s insane volatility has served as a lucrative opportunity for investors. whereas few try to recoup their losses and others eye on profitable trading.
There is no new LUNA minting, and the burning mechanism will improve the price of LUNA due to the rarity. This is the reason why investors believe in the burning mechanism of this Kwon.
