Why Are People Burning LUNA?
The influential founder and CEO of Terraform Labs, creator of the Terra(LUNA) blockchain, on Saturday engaged in a de facto Twitter question and answer session. Topics ranged from whether he’s on the run from tax authorities in Seoul, and why the company’s lawyers have all quit, to his thoughts on the latest Terra “rebirth” proposal details.
In the process, one respondent inquired about burning Terra — a mechanism by which LUNA holders can effectively send their tokens into a black hole to reduce the circulating supply.
After over 10,000 retweets and quote tweets, 280.67 million LUNA, spread among 2,500 transactions, has been lost – worth about $52,000 as of Monday at 12:30 p.m. ET.
Given the LUNA circulating supply of 6.5 trillion
This is a drop in the bucket, but most participants appear to be influenced by memes and wishful thinking.
By burning tokens, LUNA holders forfeit any eligibility for new LUNA tokens following a planned May 27 snapshot and launch of the new network.
Do Kwon later attempted to clear up any confusion over the merits of the idea.
“To clarify, as I’ve noted multiple times, I don’t think sending tokens to this address to burn tokens is a good idea — nothing happens except that you lose your tokens,” he wrote on Twitter.
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