Do Kwon shares LUNA burn address but warns 'LUNAtics' against using it
The recent Terra revival plan announced by Do Kwon, the co-founder and CEO of Terraform Labs, received mixed reactions as many questioned the effectiveness of a hard fork in reviving the fallen prices of LUNA and UST tokens. Instead, the part of the community recommended burning LUNA tokens as the most plausible way to achieve a comeback.
Kwon’s proposal to preserve the Terra ecosystem involves hard forking the existing Terra blockchain without the algorithmic stablecoin and redistributing a new version of the LUNA tokens to investors based on a historical snapshot before the death spiral. However, several crypto entrepreneurs, including Changpeng “CZ” Zhao, opined that:
Upon a persistent request from the crypto community, Kwon went against his initial plan and publicly shared a burn address for LUNA on May 21. Every LUNA token sent to this address will be burned immediately, effectively reducing the circulating supply of LUNA tokens.
To clarify, as I’ve noted multiple times i dont think sending tokens to this address to burn tokens is a good idea - nothing happens except that you lose your tokensWant there to be no confusion whatsoever https://t.co/GrzG9cclAr
Two days after sharing the LUNA burn address, Kwon reiterated his point of view that reducing the circulating supply of LUNA tokens will have no impact on the market price, stating, “nothing happens except that you lose your tokens.”
The Terra co-founder clarified that the burn address was shared with users only for information purposes and warned against using it:
However, the revelation resulted in more confusion among investors. As Cointelegraph previously reported, LUNA’s insane volatility serves as a lucrative opportunity for investors as many try to recoup their
Read more on cointelegraph.com
