The controversial Proposal 11398 has sparked discussion in the Terra Luna Classic community as some members look to support it. The proposal aims to burn all tokens in the community’s Oracle Pool. Despite the proposal still in the “Deposit” stage, it is seen as a direct attack on the community and the blockchain as it will impact funding for projects, developments, and maintenance of the network.
Proposal 11398 comes at a time when the community has voted down several burn proposals in recent weeks. The community’s Oracle Pool is funded by 10% of the 0.2% burn tax, but the development fund or seigniorage reminting is disabled after the community passed Proposal 11242. Currently, the Terra Luna Classic community pool has nearly 235 billion LUNC and 804 million USTC.
The proposal received major attention after popular validator and Terra influencer LUNC DAO tweeted to burn all tokens in the community pool, saying “Burn it all, $LUNC to $1”. While the 235 billion LUNC burn will boost the Terra Classic burn rate, it will harm the community in the long run. The network development work such as core developer Edward Kim’s plan to make Terra Classic an AI chain by introducing artificial intelligence (AI) and machine learning (ML) capabilities will be impacted.
Until now, the proposal has raised 381,994 LUNC, which is near the quorum but still lacks away from a minimum limit of 1 million LUNC to enter the voting stage. The proposal received an initial deposit of 255,415 LUNC and the latest deposit of 75,000 LUNC.
Can 235 billion LUNC Burn Push Terra Classic Price To $1?
The Terra Classic community has so far burned just 50 billion LUNC tokens. On March 2, Binance burned 8.85 billion LUNC as part of its monthly burn mechanism. Despite burning 235 LUNC tokens, the Terra LUNA Classic price will not hit $1.
The LUNC price is currently trading at $0.000121, down 4% in the last 24 hours. The 24-hour low and high are $0.000122 and $0.000126, respectively. Discussion on Do Kwon’s arrest has also divided the community.
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