Coin Weekly — Sep 11, 2022
$LUNC’s Surge and $LUNA’s Follow-up
$LUNC is Terra Classic’s governance token. In May 2022, when $UST, which was pegged to USD by Terra’s algorithm, was depegged, the value of $LUNA, the governance token, could not be maintained and the price collapsed. At the time, Terraform Labs, whom develops Terra, proposed a blockchain fork, which was passed in a governance vote resulting in a new Terra without $UST and its governance token, $LUNA. Terra, the original fork that collapsed at the time, was renamed to Terra Classic, and the name of the old governance token was changed to $LUNC. Terra Classic is a blockchain having a history of collapsing and has remained largely unnoticed. However, the price of $LUNC began to rise sharply from mid-August, and in September it was more than six times the price compared to during August.
After that, $LUNA soared, more than quadrupling in one day. In this article, we will touch upon the background behind this price increase.
◆ Tax Burn Implementation
A community suggestion led $LUNC to introduce a mechanism called Tax Burn at 1.2%. With this mechanism, every time a transaction occurs on the chain, a 1.2% Tax will be incurred for $LUNC where processing is performed. This tax amount is then burned, bringing deflationary mechanics to $LUNC. The proposal was passed and Tax Burn is expected to be introduced around September 20th.
◆ The Involvement of Various Exchanges and Projects
With the introduction of Tax Burn, the community requested help from exchanges. This is because Tax Burn only occurs for on-chain transactions, not for off-chain transactions within exchanges. As a result, major exchanges such as MEXC and KuCoin began cooperating in burning $LUNC and began holding events related to Tax Burn. The community also asked for support from the project team that left Terra Classic after Terra’s demise and transitioned to development on Terra 2.0. Because Terra 2.0 and Terra Classic are compatible, it is not difficult to launch services being developed on Terra 2.0 as they are on Terra Classic as well. The Terra Classic community is working with various organizations in the wake of Tax Burn and getting involved in the revival of $LUNC. It is believed results are reflecting in the price of $LUNC.
◆ $LUNA’s Following
After the rise in $LUNC price became a hot topic, the price of $LUNA followed suit, increasing by about 4 times in one day. After conducting some research on the background to this, there was no information worth mentioning. Therefore, one of the factors is considered to be $LUNC becoming a hot topic and $LUNA receiving associated buying demand because of it. After the $LUNA price action, there was a big wave of price increases for the tokens of the projects in the $LUNA ecosystem.
Unique News of the Week
- Binance’s BAB token issuance and benefits
BAB (Binance Account Bound) tokens can now be issued from the crypto asset exchange Binance. Users can claim them by accessing the special page of BAB token, connecting a wallet supporting BNB’s Chain, and paying 1 BUSD. BAB token issuance is limited to users who have passed KYC and only one token can be issued per UID. Since BAB tokens are a type of Soul-bound token, they cannot be transferred or disposed of. It has been announced the holders of these BAB tokens will receive benefits such as token and exclusive NFT airdrops in the future.
Quest3, which provides a quest-style event platform for Web3, quickly started an event for BAB token holders attracting attention. BAB token holders can connect their wallets to Quest3’s dApp and receive rewards by completing tasks.
2. KekChain’s first AMM DEX project KekSwap
The meme Dogecoin side chain Dogechain became a hot topic, but afterwards, KekChain became a hot topic from the development of its new meme blockchain. KekChain is currently in its testnet stage and is under development for its mainnet launch. KekSwap has been announced as the first AMM DEX project to be launched on KekChain. KekSwap is a project launched by members of the KekChain community. It has announced it will launch $KEKINU as the first memecoin on KekChain once mainnet launches. This is considered a replication of DogeSwap’s $OMNOM on Dogechain.
3. Launch of Kujira stablecoin $USK
Kujira was originally developed as one of the ecosystem projects on Terra. And after the collapse of Terra, they left Terra and launched their own blockchain Kujira with CosmosSDK migrating to this project. Kujira’s governance polls No’s. 39 and 40 concerned the issuance of its own USD-pegged stablecoin, $USK. These governance votes passed issuing $USK. $USK is an over-collateralized stablecoin with $ATOM as collateral. To give a concrete figure, if the collateral $ATOM is 5, $USK for 3 $ATOM will be issued. In the future, they plan on developing a mechanism utilizing $USK.
This article describes the latest trends in the industry. We do not assume any liability for damages related to the products or services contained herein. Readers are encouraged to pay close attention to any company, product, or service mentioned and to do their own research.