Terra (LUNA) to Execute Major Burn Following Bridge to Solana

Proposal 44 will initiate a burn of 10% of LUNA’s total supply replicating other prominent blockchain networks that have made a similar move.

By
Anirudh Tiwari
on
October 24, 2021
Category:
Breaking News

On The Shoulders of Giants

Do Kwon, co-founder, and CEO of Terraform Labs (TFL), announced the implementation of proposal 44 that will bring the burn of 10% of its total supply, i.e., 90 million tokens.

With proposal 44, Terra takes a leaf of Ethereum’s EIP-1559 and Binance Smart Chain’s (BSC) BEP-95 that introduced token burn in their own ecosystems to put the tokens on a deflationary path. This burn event for LUNA is supposedly meant to improve staking rewards.

“Next week, we will uphold @terra_money signal prop 44 and initiate a proposal to burn 90M Luna in the community pool to mint $UST for Ozone.This will reduce Luna total supply by 90M, and increase $UST supply by roughly 3-4 billion. (..) A byproduct of this operation is that a lot of swap fees will accrue, which we expect will result in $LUNA staking returns (minus airdrops) to 5 x.” mentioned Kwon, via the Twitter post.
Source: Terra Medium

As previously reported by Solana.News, the Wormhole network expanded the capabilities of its bridge to allow users to utilize the TerraUSD (UST) stablecoin and Terra (LUNA) tokens in Solana’s DeFi ecosystem. 

Terra previously used the Shuttle Bridge, until the migration to the Wormhole bridge is completed, Shuttle and Wormhole bridge assets will coexist on the network. As per data from Wormhole, there is over $26.8 million of total value locked (TVL) on this bridge already.

In a more recent development,  it was revealed that Terra’s Do Kwon was served with a subpoena at the Messari Mainnet cryptocurrency conference in New York on September 20, as reported by Decrypt.


About Terraform Labs

Terraform Labs is the South Korean company that is behind the Terra public blockchain. The blockchain protocol uses fiat pegged stablecoins to enable price-stable global payment systems. The protocol aims to combine the price stability and wide adoption of fiat currencies with the censorship resistance of BTC to provide the users of the blockchain with fast, convenient, and affordable payments and settlements.

Find more about Terra here:

Website | Twitter | Youtube | Medium | Reddit | Discord | Whitepaper | CoinMarketCap

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Anirudh Tiwari

Anirudh is a cryptocurrency analyst and writer who specializes in derivatives, DeFi, regulations and CBDCs. He has a Master’s degree in Finance. Before delving into crypto, he worked with a leading U.S. based investment bank. Apart from work, he is a music connoisseur and likes to play the drums.