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Tuesday, February 27, 2024

Terra Classic Project DFLUNC Burns Over 1.6 Billion LUNC

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Terra Classic Project DFLUNC Burns Over 1.6 Billion LUNC

  • The huge LUNC burn by the protocol brought the overall LUNC burn to more than 57.8B.
  • On May 1st, as part of its monthly LUNC burn mechanism, Binance burned 1.27B LUNC.

DFLunc, a popular new Terra Classic project, has burnt over 1.6 Billion LUNC tokens in only two weeks thanks to its huge LUNC burn mechanism. In April, the DeFi protocol was released with the intention of burning billions of LUNC tokens at once, which would reduce the inflated circulating supply.

The huge LUNC burn by the protocol brought the overall LUNC burn to more than 57.8 billion. On May 1st, as part of its monthly LUNC burn mechanism, Binance burned 1.27 billion LUNC.

DFLunc and Binance Contributing Heavily

Binance has burned its LUNC supply by 31.83 billion tokens thus far. On May 12 DFLunc announced on Twitter that it has burnt over 1.6 billion LUNC, surpassing Binance’s burn of 1.27 billion LUNC at the time. As interest in Terra Classic grows, its community has already burned about 2 billion LUNC on the DFLunc Protocol.

Deflating the LUNC supply using a perpetual burn mechanism, the DeFi protocol is comprised of a collection of smart contracts.

Users may only create new DFC tokens by exchanging existing LUNC tokens for burn value, and the DFLunc Protocol serves as a validator for Terra Classic. Two CosmWasm-based smart contracts, DFLunc and CW20-DFC, are used.

To mint DFC tokens, users must burn LUNC by paying USTC as protocol fees. The DeFi protocol requires more LUNC to be burned the more staked via the validator. The protocol’s overall strategy is broken down into intermediate goals, the last of which is to expand its validator on the Terra Classic chain.

The protocol is still consuming LUNC through the contact address, as seen by the transactions. There are currently 57.8 billion LUNC tokens that have been burned by the community as a whole.

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