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Terra Luna Community Approves Plan to Burn Assets

Terra Luna Community Approves Plan To Burn Assets

The Terra Luna community has passed a critical proposal to burn unbacked Axelar assets to fortify the ecosystem and reestablish trust.

The Terra Luna community has implemented a significant measure to fortify its ecosystem. A proposition to burn unbacked Axelar assets was overwhelmingly approved by members in a recent governance vote. LUNA’s price has experienced a 4% increase due to this action, which has incited a renewed sense of optimism among investors. The proposal indicates a dedication to re-establishing trust in the Terra Luna network, as most voters voted favorably.

The Terra Luna Community has voted to destroy unbacked Axelar assets

The most recent Terra Luna governance proposal, v2.14.0, emphasizes eliminating unbacked Axelar assets. The objective of this chain upgrade is to eliminate specific tokens that are not supported, thereby enhancing the security of assets within the network.

It is important to note that the proposal was submitted on January 26, and the voting process is scheduled to conclude in three days. The proposal is supported by over 202.67 million votes, with minimal opposition. The majority decision emphasizes the community’s commitment to bolstering the ecosystem’s credibility.

LUNA Price Responds to Significant Governance Change

LUNA’s market performance has been immediately affected by the ratification of this proposal. After the announcement, the LUNA price increased by 4% to $0.3204 due to the favorable investor sentiment. It is also worth noting that its trading volume increased by 73% to $39.38 million.

Concurrently, the price of LUNC increased by 4% and was traded at $0.00007729. Additionally, the LUNC Futures Open Interest increased by over 3%, as evidenced by the CoinGlass data, suggesting a robust level of market confidence.

According to analysts, the valuation of LUNA could be further bolstered in the coming weeks by the destruction of unbacked assets. Market participants perceive this as crucial in restoring investor confidence and stability in Terra Luna. The community has been actively advocating for initiatives that improve the utility of tokens and the network’s resilience.

Charles Hoskinson Terra Luna Classic Collaboration Hints

Charles Hoskinson, the inventor of Cardano, has recently expressed interest in the Terra Luna Classic (LUNC) ecosystem, which has served to heighten the excitement. His involvement follows a presentation by LUNC validator MrDiamondhandz1, who emphasized the network’s ongoing endeavors to revitalize its algorithmic stablecoin, USTC.

The LUNC validator observed that the community took over the project after Do Kwon’s departure and has since received substantial support from Binance. Monthly token burns and ecosystem enhancements have been instrumental in the project’s continued existence.

In the interim, Hoskinson responded favorably, asserting that Cardano developers have a variety of concepts for algorithmic stablecoins and are eager to investigate potential synergies. This statement has sparked speculation regarding the possibility of a partnership between LUNC and Cardano.

Conversely, the incineration proposal has been strongly endorsed, and the emphasis is now on its implementation. Terra Luna’s long-term sustainability could be enhanced by eliminating unbacked assets, which could also mitigate risks. At present, the focus is on how these developments manifest and whether they have the potential to stimulate a long-term increase in the prices of LUNA and LUNC.

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