Terra Classic (LUNC), which has experienced a great decline as a result of the latest speculations, has taken a heavy place on the agenda of the whole world.
The burning policy, which LUNC investors have been waiting for with great interest, has been started. LUNC, who stated that it will make you forget the whole process in the past and regain the interest of investors, could not meet the expectation.
According to the burn policy, crypto exchanges would burn 1.2 percent in line with the volume, helping to reduce the supply of LUNC on a regular basis. However, most crypto exchanges did not accept this burn policy. As the savior of the bad course, the results of the heavily advertised burning policy upset the investors. Investors who expected that their investment assets would increase in value and return to their previous state were not satisfied with the result.
What Happened in the Past, How Did the LUNC Incineration Policy Result?
The Terra team had released their own LUNA and UST to be interconnected. According to this system, UST, a stablecoin, and Luna, an investment coin, would run in parallel. UST has also affected LUNA with the attacks and selling pressure it has suffered. The Terra team needed to increase LUNA’s supply to save the UST. Terra, who lost control of both projects, could not prevent the collapse. After the collapse, Terra went through an overhaul under the name of rebranding. After the revision, LUNA went live as LUNC. UST, on the other hand, returned as USTC despite intense criticism.
Declaring that it will continue to work and develop, LUNC has not yet seen the effect of the burning policy. In particular, strong traders, who saw that big exchanges like Binance supported the burn policy, applied the take the news tactic. While LUNC investors were waiting for the burn policy to start, traders who had the opportunity to increase for a short time switched to the sell expectation tactic.
LUNC, which was the focus of intense interest, was thus unable to evaluate its biggest news, the burning policy. The point that worried the investors was the fear that it would not be able to reach its old value in the future by turning into a trading project. It became the agenda for most investors to claim that it will either be the same as before or be reset with the news of the burning.
What is Tax, Burn and Tax Burn?
Tax, which is frequently brought up by foreign sources, is known as tax. It is defined as the tax deducted from the volume realized by any cryptocurrency. Usually, this tax is collected by exchanges that provide cryptocurrencies.
The nose we hear very often is known as burning. It can be described as the supply reduction of any cryptocurrency according to the planned schedule. Generally, the burn is done by transferring the desired amount from the total owned supply to the wallet called Wormhole.
Tax Burn mechanics, on the other hand, is the direct burning of the tax deducted from the volume.
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