Terra LUNA Classic (LUNC) continues to climb as it plans to revive the chain and lure investors back. Since August 26, LUNC has surged to his $0.00031131, equivalent to a gain of more than 2,400%.
However, the bull run has started to dry up and LUNC has given up all of today’s gains and is trading below yesterday’s close.
Nevertheless, LUNC’s all-time low $0.000000999967on May 13, the previously “dead” token rose a staggering 27,000%.
The Terra ecosystem collapsed in May following the de-pegging of UST. During the panic, the stablecoin fell to $0.006. Despite attempts to re-peg, the UST has fallen well below $1 and is currently trading at $0.03458.
UST worked with the native LUNA token in the algorithmic process to ensure price stability. Since losing its peg, the entire Terra ecosystem has been in turmoil, with claims that the project was a scam from the start and orchestrated by founder Do Kwon.
With billions of dollars lost and regulators spinning, development and governance was handed over to the community and rebranded as LUNA Classic. But given the controversy, many investors, especially those previously plagued by scandals, remain wary.
Nevertheless, the rollout of new features seems to attract investors, as evidenced by LUNA Classic’s phenomenal rise since mid-August. Miles Deutscher He pointed out that LUNA Classic has proven that bear markets can yield big returns.
At the heart of this revival is a generous staking mechanism that went live on August 27th. The staking rate was his 2.6% of total supply at launch. However, the staking rate continues to increase.according to @LuncStaking_Botthe current ratio is 7.5%, nearly tripling within two weeks.
The current staking reward is around 37% annually, significantly higher than Cardano’s around 5%. However, unsustainable yields were a contributing factor to the demise of the original Terra ecosystem.
Similar to existing burn mechanisms that have taken over 3 billion tokens out of circulation, Deutscher We tweeted about an additional burn mechanism applied to token swaps at a rate of 1.2% of transaction volume.
He added that major exchanges including Binance and Kucoin are rumored to support the token swap burn, which will start on September 12th.