Price of Terra Classic Continues to Rise - LUNC Up 80%

After what seemed to be a collapse in early May 2022, Terra Classic (LUNC) now seems to be making a recovery. Around the world, one of the most spectacular comebacks of the year is developing. Since it reached its bottom after the Terra collapse, LUNC has grown by 37,00%.

This exponential growth has been largely aided by the 1.2% token burn tax imposed on all transactions. The goal of this initiative is to turn LUNC into a deflationary currency as the country's economy grows.

Terra Classic Price & Tokenomics

The price of Terra Classic is currently $0.000517, with a $3.7 billion 24-hour trading volume. After hitting a high of $0.0004500 and a low of $0.0004003, Terra Luna Classic started the day at $0.0004057.

With a live market cap of $3.1 billion, CoinMarketCap is now ranked #26. A total of 6,151,072,613,161 LUNC coins are in circulation.

In the last day, Terra Classic has grown by 8.19%. The rise of the tokens is even more impressive on the weekly charts, as LUNC soared over 80% in the past seven days.

The Update v22

Most likely, the v22 update is what made it possible for LUNC to experience triple-digit growth. Investors may make new investments in the network after the improvement. Investors will find LUNC's incentives of up to 37.8% on Staking Rewards to be quite enticing. Unsustainable interest rates continue to be a worry, especially during periods of low liquidity. Developers incorporated token burning to heighten scarcity.

More than 3 billion LUNC tokens have been removed from circulation, according to the LUNC Burner website. The action will help to lessen the quantity currently in use. The token's worth is rising, nevertheless. On August 26, Binance, the most popular cryptocurrency exchange, declared that it will support the network update by halting deposits and withdrawals until the upgrade was finished.

The trading of LUNC won't be impacted, according to Binance's release. However, the neighborhood has always supported this initiative. As a result, the rise in trading activity and price points to a more upbeat general mood.

Configuring the Taxes

Following the proposal to change the Terra Luna Classic tax setting, Terra Classic has been on a bullish run. Taxes will be gathered, burned, and used to pay for on-chain operations. Trading on CEXs and other off-chain activities won't be subject to the tax. Drexel University associate professor of computer science Edward Kim came up with the idea.

The first complete proposal for this transaction tax was made public in June. It was unclear, however, how this would operate or what coding would have to be added to the network's core in order for it to work.

Edward Kim, a member of the community, recently presented a more thorough plan on Terra Classic's official forum, which contained more details about how the tax will operate.

Kim's proposal states that if the tax is put into effect, this may be a pivotal period for Terra's LUNC token, with the token's value rising to $1. This makes it simple to understand why the LUNC/USD has fared so well over the past few weeks.

Additionally, Binance stated in a statement on September 2 that it would stop accepting USTC and ERC20-based LUNC (Shuttle) deposits and withdrawals (Shuttle). Additionally, it will stop all transactions on the BNB Smart Chain, the Polygon network, and the Ethereum network (BEP20). On September 7, 2022, deposits and withdrawals will be momentarily suspended.

The move by Binance to suspend allowing deposits and withdrawals have nothing to do with the taxing and burning strategy because it is a centralized exchange. Investors were probably unconcerned by the exchange's decision for this reason.