Stablecoin issuer Terra (LUNA) is seeing a massive price increase months after the protocol’s stablecoin depegged from the US dollar and lost over 99.9% of its value.
The Ethereum (ETH) competitor exploded from $1.96 to $5.94, an over 200% increase, in just 24 hours after Terra Luna Classic (LUNC), its rebranded version, announced support for burning tokens.
LUNA has since dipped and is moving for $5.73 at time of writing.
Earlier this week, crypto exchange platform KuCoin announced it will support the 1.2% tax burn proposal of the LUNC community.
The burn proposal would raise taxes on users of the Terra blockchain to 1.2% as a means of burning tokens.
“This proposal initiates the tax for all on-chain transactions as first described in proposal 3568 (for the 1.2% burn) and proposal 4159 (distribution of v22). Taxes will be charged and burned for on-chain activity such as sending between wallets and smart contracts that interact with the chain.”
In August, the LUNC decentralized autonomous organization (DAO) was created. The protocol says the DAO was created to revive the chain after its collapse.
“Three months ago we saw the potential for LUNC to rise like a phoenix from the ashes. This is why we created LUNC DAO, to inspire the community to revive the chain. Today the milestone of staking was reached. If we can achieve this in three months, imagine what we can achieve in one year.”
News of the tax burn proposal sent LUNC flying, as it went from $0.000241 on September 4th to $0.000584 on September 8th, also an increase of over 200%. It has since stabilized and is changing hands for $0.000439 at time of writing.
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