The Terra community voted to burn 89 million LUNA tokens (approximately $4.5 billion) after an offer proposed by Terra co-founder Do Kwon passed, with the token’s price rising from $50 to $54. past that, which was close to a record high of $54.77, then it sank into a full market crash. Since almost all crypto markets have turned red.
1/ The on-chain votes for proposals 133 and 134 to burn the 88.675 million Pre-Col-5 $LUNA in the Community Pool (~$4.5 billion), swapping for $UST using the on-chain swap, and reducing the oracle_rewards_pool distribution window from 3 to 2 years have now passed!
— Terra (UST) Powered by LUNA
(@terra_money) November 10, 2021
LUNA is a utility token for decentralized applications built on the Terra blockchain. Its main use is to maintain 1:1 value with Terra’s stablecoins algorithm. LUNA is mint. It increases as UST demand decreases, and it burns as stablecoin demand increases.
After a successful vote, 520,000 LUNA (worth over $25 million) were removed from the system. The remaining 88+ million will be burned over the next two weeks. This could theoretically increase the value of LUNA.
2/ The first swap to burn 520K LUNA → ~16.5 million UST according to the details in the proposal has now been executed
https://t.co/5FSrVaYGaN
— Terra (UST)
Powered by LUNA
Yesterday’s vote was in line with the grand plan of the Columbus-5 network upgrade. in late September This changed how and when Terra burns its tokens, after the upgrade, instead of transferring LUNA to the community pool, LUNA that used mint stablecoins will be burned permanently. This movement is designed to increase the value of LUNA.
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