Terra Luna Classic Price Prediction, Will LUNC reach $0.36 in price?

Terra Luna Classic (LUNC): An overview

Source: Twitter and the LUNC Classic Community

The open-source blockchain protocol Terra, now referred to as Terra Luna Classic (LUNC), supports a vibrant ecosystem of decentralised apps (dApps) and top-notch development tools. It is constructed using the Cosmos SDK. The blockchain uses the Tendermint proof-of-stake (PoS) consensus method to pave the way for the next-generation of decentralised finance (DeFi).

LUNC, the native coin of the network, is mostly employed for staking. In addition, it can be used for governance, which enables users to modify the Terra protocol.

It also functions as a payment platform for an algorithmic stablecoin. Its primary function was to act as a “counterpart” to TerraUSD (UST), now Terra Classic USD (USTC), by absorbing price swings.

The attack that changed it all

After an assault that took advantage of a flaw in the blockchain protocol, UST was unable to properly mint and burn its tokens to balance its supply and demand at the $1 peg. After losing its dollar peg, UST saw a catastrophic [nearly 99%] drop of value, one of the biggest crypto collapses in history.

Do Kwon stepped up the resurrection efforts as a result of the subsequent occurrences. He then suggested a hard fork, which received a majority of the community’s support.

As a result, two Terra blockchains now run concurrently:

The original Terra blockchain, with the token renamed to “Luna Classic (LUNC).”
Terra 2.0, a recently released blockchain platform, has a native token named “LUNA.”

The goal of Terra 2.0 was to take over all the existing network’s protocols and programmes. The network’s stablecoins also received a big improvement.

The names of all the original network stablecoins, such as UST, KRT, and EUT, were changed. At the time, they were referred to as Terra Classic stablecoins and had the respective designations USTC, KRTC, and EUTC.

Notably, there were no stablecoins with the “Terra” trademark on the latest blockchain generation. This differentiation served to further distinguish the old chain apart from the new one, preserving the heritage of the former while paving the way for the latter’s new products and services.

What does LUNC’s road ahead look like?

Source: LUNC classic community/Twitter

Community sentiment

LUNC’s community showed encouraging signals of resuscitation despite the demise of its network, as “#LUNCcommunity” was trending on Twitter.

By voting against controversial suggestions on LUNC’s burn in the hopes of recovering the losses from the last meltdown, the community contributed to the coin’s recovery.

Luna Classic was turned over to its community to manage while Kwon and his team concentrated on Terra 2.0’s development.

Effects of LUNC’s burn tax

The community started a token burn process in an effort to repair the harm caused by over-minting. at the intention of lowering the supply from 6.8 trillion to 10 billion, this initiative started at a burn rate of 1.2% for each LUNC transaction. In addition to reducing supply, the goal was to increase demand and value, particularly in the wake of a significant market meltdown.

This reduction was orchestrated in large part by validators, and their efforts weren’t ignored. An increase in social media mentions and interaction, especially on sites like LunarCrush, suggested that the community had an optimistic reaction.

Binance and KuCoin, two significant exchanges, stepped up and supported the burn mechanism, sending positive signals to other platforms to help LUNC’s recovery. The combination of social traction and exchange backing prepared the ground for the possible rise of the cryptocurrency.

Approximately 74.91 billion LUNC have been destroyed since May 2022. While the initial burn rate for each transaction was 1.2%, it was adjusted to 0.2% in an effort to boost blockchain activity.

However, the circulating supply was not sufficiently affected by this rate. In March 2023, a proposal was made in response to this realisation, and by May of that same year, the burn rate had been raised to 0.5%. There are 5.82 trillion LUNC in use as of September 2023.

What’s happening with USTC?

Recently, the Terra LUNA Classic community decided to halt the production of USTC. The USTC-LUNA switch system, which made it simple for users to interchange UST and LUNA, was the main cause for concern. However, during financial crises, this approach became troublesome.

A proposal to stop using this swapping mechanism was made in order to protect investment interests. In essence, the goal of this plan is to reestablish the coin’s peg to the dollar.

History of Terra

Terra.money is the source

Terraform Labs created the Terra blockchain.Daniel Shin and Kwon founded the business, which made its debut in January 2018. After its launch, an Initial Coin Offering (ICO) for its native token, LUNA, was held in the early months of 2019. Based on market capitalization, Terra’s outstanding performance over the ensuing years put it into the top ten largest cryptocurrencies globally.

The white paper of Terra explains the founding team’s philosophy: they aimed to realise Bitcoin’s (BTC) original goal of a decentralised peer-to-peer electronic currency system. In order to achieve this aim, they came up with a novel strategy utilising stablecoins.

Before helping to start Terra, Shin established Ticket Monster (TMON), a well-known South Korean e-commerce company. Later, he helped co-found Fast Track Asia, an incubator that helps business owners build strong businesses from scratch.

The founding of Anyfi, a company focused on decentralised wireless mesh networking technologies, is one of Kwon’s many accomplishments, on the other hand. During his time working as a software developer for companies like Apple and Microsoft, he significantly improved his abilities.