Skip to main content

Terra Community burns LUNA for 4.5 billion US dollars



USD 4.5 billion in Luna tokens: The Terra community has voted for a major cut in the token supply that could prove to be a catalyst for LUNA performance.

Coin-Burning is not uncommon in the crypto-Space. Regardless of whether it happens at regular intervals, as with Binance, or with every transaction, as with Ethereum, the amount in circulation is reduced each time. There is no need for a canceled business degree for this: If the amount in circulation decreases while demand remains the same or increases, the courses increase. LUNA investors can also speculate on this after broad approval for the coin burn on Tuesday .


LUNA shortage

A total of 88.7 million LUNA tokens at the current equivalent of USD 4.5 billion will be removed from the community pool and, conversely, from the amount in circulation over the next two weeks. This resulted in the vote of the Terra Community, which approved proposals 133 and 134. On Tuesday, 520,000 LUNA were destroyed for the first time.


The upgrade of the Terra-Mainnet Columbus-5 carried out in September also has a deflationary, i.e. shortening, effect on the LUNA stocks. Since then, the native tokens that Terra uses to stabilize the price of stablecoins no longer flow into the community pool, but are also burned. In the long term, this could trigger a spiral in value. The higher the demand for the stablecoin UST, the more LUNA it takes to push the rate down to one US dollar, which exponentially destroys more LUNA and boosts the token rate accordingly.

How does Terra work?

Terra is a stablecoin ecosystem that algorithmically creates value stability. Unlike Tether's largest stablecoin USDT, Terra does not cover the coins with fiat deposits, but with LUNA. The supply of the respective stablecoins is dynamic and adapts to demand in order to compensate for exchange rate fluctuations. If the demand rises or falls, i.e. the supply decreases or increases, the algorithm either burns LUNA and produces UST in the equivalent or burns UST and produces LUNA.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
StealthEx - The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
Upland - Collect Digital Properties & Test Your Skills
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin...
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne...
Post a Comment
Read more

Bored Ape Yacht Club NFTs stolen through phishing on Instagram

  Bored Ape Yacht Club ( BAYC ) developers announced on Monday that hackers have hijacked the official Instagram page of the popular NFT collection and posted links to a fake airdrop. Crypto enthusiasts who connected their MetaMask wallet to the rogue website subsequently had their Ape NFTs stolen. Apparently, the attack was planned to coincide with the one-year anniversary of the BAYC collection. This increased the "perceived credibility" of the phishing link. About 100 NFTs are said to have been stolen in the phishing attack . According to CoinGecko data , the minimum price for a BAYC NFT is 139 Ether ( ETH ) or $400,726. So if reports are correct, over $40 million worth of NFTs were stolen in the attack. These numbers are only the lowest estimate, however, as they are based on the lowest price.  At the time of writing, it was still unclear how the hackers gained access to BAYC's official Instagram account. Social media users have pointed out the importance of two-fact...
Post a Comment
Read more