The cryptocurrency market is in a turbulent state, with the majority of coins seeing drastic price drops. However, one coin that has remained relatively stable throughout all this turbulence is Terra (TRA).
The “terra luna burn chart” is a graph that shows the percentage of total LUNA supply that Terra is preparing to burn.
Do Kwon, co-founder and CEO of Terraform Labs, the South Korean firm behind the Terra (LUNA) blockchain project, recently stated on Twitter that the on-chain vote for the project’s proposition 44 will begin on Wednesday and will last two weeks.
The plan to burn 88,675,000 LUNA from the community pool in order to produce 3–4 billion UST would lower the native token’s overall supply by almost 9%.
Getting Ozone Off the Ground
The community pool will be replaced with Terra’s native stablecoin, UST, after the successful implementation of the network’s cardinal update, codenamed Columbus-5.
On @terra money Agora, a proposal for a burn was submitted: https://t.co/Ufq6V9dofj
In 48 hours, Onchain will be available for voting. https://t.co/Ng2ds9RizS
October 25, 2021 — Do Kwon (@stablekwon)
Minted UST will be used to kickstart Ozone, a Terra-specific insurance mutual protocol that allows for levered coverage of technical failure risks.
“Because the LUNA price and amount in the Community Pool has changed dramatically since Prop 44,” Kwon explained on Terra’s Agora, “the resultant UST minted from the burn will go to the Community Pool, with the community deciding how much to deploy to bootstrap Ozone via a separate proposal once Ozone goes live.”
The plan also includes a 10 million LUNA contribution to the Community Pool.
“Due to the modifications introduced in Col-5, where all on-chain stablecoin swap fees are channeled to the oracle rewards pool for validators,” according to Kwon, adopting the proposal will have an impact on swap fees.
“As a consequence of this operation, a lot of swap fees will accumulate,” he noted in a tweet, adding that LUNA staking payouts would likely grow fivefold.
As a consequence of this operation, we anticipate a lot of exchange fees to accumulate, bringing $LUNA staking returns (excluding airdrops) to 5 x.
October 22, 2021 — Do Kwon (@stablekwon)
Terra’s TVL has attained an ATH.
The total value locked (TVL) in protocols on the network achieved a new all-time high with the integration of the IBC protocol and the availability of Wormhole V2 support for Terra last week.
According to statistics from DeFi Llama, TVL on Terra hit $10.22 billion last week, with protocols Anchor, Lido, Mirror, and Terraswap accounting for more than 90% of the total.
According to DefiLlama, the Terra’s TVL hit a new high of 10.08 billion dollars, including Anchor ($4.09 billion), Lido ($3.01 billion dollars), Mirror ($1.31 billion dollars), and Terraswap ($1.21 billion dollars).
October 22, 2021 — Wu Blockchain (@WuBlockchain)
Terra is now the fourth most valuable blockchain, with a market capitalization of $9.97 billion, after Ethereum, Binance Smart Chain, and Solana.
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Luna is a cryptocurrency that burns its supply when it’s in circulation. It’s preparing to burn more than 9% of the total LUNA supply. The burning process will take place at block number 1,000,000. Reference: how does luna burn work.
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