🌖 LUNC News: Terra Luna Classic Core Dev Reveals Major Update on Tax2Gas

LUNC News: Terra Luna Classic core developer on Friday said it has completed work on Tax2Gas, an upcoming major upgrade that will boost the network as well as LUNC price. The core developer added that the expected date of the upgrade is still unclear unless satisfaction in testing on rebel testnet.

🌖 Terra Luna Classic’s Biggest Upgrade Tax2Gas Draws Near

Genuine Labs, a core L1 developer of community-led blockchain Terra Classic, broke the silence after the community complained about the delay in the upgrade. The developer revealed that it resolved some internal issues among the team, which involved threats, harassment, and responsibility deviation.

Major work on Tax2gas is completed. The team will further focus on testing on the rebel testnet until satisfaction is met to provide the Terra Luna Classic blockchain with a better upgrade.

“We would like to address that any information coming from any participant that is not Genuine Labs or LUNCLIVE is misleading and in no way form or fashion a statement from Genuine Labs as we haven’t had any contact with anyone other person or entity,” said Genuine Labs.

As CoinGape reported earlier, Tax2Gas upgrade is game-changing as it will resolve issues including contract developers’ need to calculate the burn tax manually. The issues are — clients or dApps have to calculate the tax themselves as the simulation endpoint only provides gas estimates. Migrating audited dApps becomes cumbersome due to these Classic-specific adjustments, leading to potential re-audits.

🌖 Can LUNC and USTC Prices Rebound?

Amid this major LUNC news, Terra Luna Classic ecosystem tokens are trading under support level despite opening of Shuttle Bridge by Terraform Labs and the plan to burn millions of tokens in wallets linked to the company’s and Luna Foundation Guard.

LUNC price fell 2% in the last 24 hours and 9% in a week, with the price currently trading at $0.00007537. The 24-hour low and high are $0.00007482 and $0.000077, respectively. The trading volume has also decreased further by 20% in the last 24 hours.

Coinglass data indicates the buying activity on LUNC and 1000LUNC are mixed today. Total LUNC futures open interest rose 2% in an hour.

Meanwhile, USTC price is trading at $0.01537, down 3% in the past 24 hours. The 24-hour trading volume saw a 6% drop in the last 24 hours. Moreover, total USTC futures open interest saw a 3% drop in the last 24 hours.

🌖 Binance Burns 1.2B LUNC, But Terra Classic Price Struggles to Rebound: Here’s Why

Renowned Binance Exchange has continued to support the Terra Luna Classic Community with its latest 1.2 billion LUNC token burn. Despite this activity, LUNC’s price struggled to rebound in spot and derivatives markets, raising questions among traders.

🌖 Binance’s LUNC Token Burns

Burn transaction data from Galaxy Finder revealed that Binance burned 1.2 billion LUNC tokens on September 1. The burn transaction also generated 5.96 million LUNC in taxes. Between July 31 and August 29, the crypto exchange burnt $97,229.23 in trading fees in the 25th batch of the LUNC burn mechanism. Within the last two years, Binance has burned about 65 billion LUNC tokens.

So far, projects, crypto exchanges, and investors have removed 132 billion LUNC from circulation. However, the amount of LUNC tokens removed from Binance through burning has dropped substantially over time.

As discussed earlier, Binance usually performs LUNC burn transactions on the first day of every month to support the Terra Luna Classic ecosystem. The burning mechanism reduces the total number of LUNC in circulation, potentially increasing the asset’s valuation.

Binance’s commitment to LUNC became evident even after Terra collapsed in 2022. The monthly LUNC burn has been a key component of the community’s attempts to restore LUNC’s price value and stability in the ecosystem.

🌖 LUNC Shows Weakness in Key Markets

However, the latest LUNC burn has not triggered a bullish momentum on price. Over the past week, LUNC experienced a 7.2% decline, setting its price at $0.00007859, per MarketCap data.

Also, LUNC’s price is exhibiting weakness on the 50-day Moving Average, a key technical indicator gauging performance. Notably, LUNC has been trading below 50-MA for the past two months.

Furthermore, 1000LUNC futures open interest trading on Binance and Bybit declined by 6% in the last 24 hours. This suggests reduced investor interest despite the Binance LUNC burn.

LUNC’s recent price struggles can be attributed to several factors in the community and the broader market. For example, the market is facing increasing volatility, with Bitcoin (BTC), the leading cryptocurrency, declining by 6.4% in the past week. These declining prices might have contributed to reduced optimism in the LUNC ecosystem.

Additionally, the implementation of Terra Luna Classic’s Tax2Gas was recently postponed due to some challenges, including security and pull request issues. As highlighted in our previous article, users anticipated a tax burn increase with the Tax2Gas implementation. However, the postponement has caused traders to move away, causing the LUNC price to plunge.

Furthermore, LUNC’s declining price follows a heated debate regarding validators’ breaching chain rules. In our recent update, we revealed a discussion in the community that alleged the JESUSisLORD 2 (JIL2) validator violated the DynComm rule by running another validator on the same chain.

🌖 Terra Luna Classic To Burn 1 Billion USTC & 275 Billion LUNC?

Terra Luna Classic community awaits massive USTC and LUNC burn by Terraform Labs (TFL) as per the Chapter 11 bankruptcy and court order in the U.S. SEC case. While the actual amount of Terra ecosystem tokens to be burned remains uncertain, Terra Classic members claim it’s over 1 billion USTC and 275 billion LUNC tokens.

🌖 Terra Luna Classic Community Prepares For USTC & LUNC Burn

Terra Luna Classic validator HappyCattyCrypto in an X post on September 9 opened up about his research into the amount of tokens burn expected from TFL. According to him, over 1 billion USTC and 275 billion LUNC tokens could burn as a result of Chapter 11 bankruptcy proceedings.

Notably, over 2.58 billion LUNC have been claimed from the shuttle bridge reopened by TFL, as per Terra Finder transactions data.

In addition, the validator urged the community to migrate Mirror Protocol and Anchor Protocol contracts to new code via governance similar to Risk Harbor. The funds associated with Mirror Protocol and Anchor Protocol are Columbus-5 native assets USTC and LUNC.

All Terra Luna Classic assets as stated by Chris Amani and ordered by the court judgment should be burned. TFL will not interact with Columbus-5 or Phoenix-1 chains after October 31. Any token burn or transfer will be difficult post the court-approved date.

“As TFL begins winding down its operations, Proposal 4818 will be the final chain upgrade that we implement. Pursuant to TFL’s settlement with the SEC and implementation of its proposed chapter 11 plan, TFL will no longer have the ability to support future chain upgrades,” as per Terra Money.

Total LUNC burn from Mirror Protocol would be 480,404,166, as per a Commonwealth post. Also, a total of 46,556,271 USTC can be burned from Mirror Protocol and 729,976,293 USTC from Anchor Protocol.

🌖 LUNC and USTC Prices Performance

Terra Luna Classic ecosystem tokens LUNC and USTC are rebounding from lows amid a slight positive sentiment in the crypto community. The upside momentum also came after Genuine Labs revealed that it will soon proceed with Tax2Gas upgrade on the chain after a few tests.

LUNC price climbed 5% from the 24-hour low, with the price currently trading at $0.00007537. The 24-hour low and high are $0.00007543 and $0.00007906, respectively. The trading volume has also increased by 27% in the last 24 hours.

Meanwhile, USTC price is trading at $0.01593, up 10% in a week. The 24-hour low and high are 0.01532 and 0.01593, respectively. However, trading volume saw an 8% drop in the last 24 hours.

🌖 Terra Luna Classic Breaks Silence on Crucial Tax2Gas Upgrade

Last month, the community behind the Terra Luna Classic (LUNC) blockchain voted nearly unanimously to implement a game-changing upgrade. The Tax2Gas mechanism, pivotal for chain growth, erases the need to calculate the LUNC burn tax manually.

🌖 The Highly-Awaited LUNC Burn Tax Raise

The critical chain upgrade accelerates the LUNC burn tax rate from 0.5% to 1.5%. While the 1.2% burn tax rate was intended before Terra Luna’s system crash in May 2022, the extra 0.3% is set to fund further development and renovation of the chain.

While the LUNC community blessed proposal #12120, “Genuine Labs’s Tax2gas Implementation,” in early August 2024, Genuine Labs, the developer company responsible for executing this order, was off the radar for most of August. The company broke its silence on September 6, 2024, dishing out a couple of critical LUNC updates.

Genuine Labs first addressed the internal conflicts among team members, pledging to have found a viable solution to the “threats, harassment and responsibility deviation.” 

Moreover, the developer company raised concerns about misleading information from third parties and concluded that LUNC enthusiasts should only expect updates from Genuine Labs’ official handle or LUNCLIVE.

🌖 Is the LUNC Burn Upgrade Completed?

Due to popular demand, Terra Luna Classic’s Tax2Burn upgrade could drastically reduce the overprinted supply. However, several network delegators and validators have complained about the delay in executing this already-approved proposal.

Fortunately, Genuine Labs stated in a September 6, 2024 message that “Tax2Gas is finished” and that the developers are now focusing on providing the chain with a “Finished product deployable on-chain.” The message asserted that further testing would be done on the Rebel testnet “until satisfaction is met.”

While the message didn’t specify when this testing is to be completed, LUNC’s chain recently received other crucial upgrades that could impact LUNC’s price in the near future.

Specifically, TerraForm Labs reopened the Shuttle Bridge as part of the bankruptcy process. The Shuttle Bridge lets holders return their wrapped Terra Luna Classic coins to the original network.

After a preliminary period of 30 days, all LUNC and Terra Classic USD (USTC) assets remaining in this Shuttle Bridge will be burnt, potentially adding a substantial contribution to Terra Luna Classic’s communal burning efforts and the hiked LUNC burn tax rate.

🌖 3 Signs Why Luna Classic Cannot Reach $0.01

Luna Classic continues to garner support within the crypto community as many aim for a price surge. However, chances of this appear unlikely as several catalysts to the price surge are absent from the ecosystem. LUNC price stands at $0.00007538 far below bullish projections.

Several Luna Classic holders have projected massive milestones for the asset in recent months. However, the road ahead looks dark because of the asset sentiments and supply factors.

🌖 Persisting Fear

The major reason why LUNC records slower growth than projected is due to the prevailing sentiment around the asset. Although the Terra ecosystem imploded two years ago, the widespread effects of the collapse are still echoed in the market. This has led to a slow inflow of the asset against the projected buzz.

The platform’s algorithmic stablecoin lost its peg with the dollar leading to huge losses. Subsequently, the price crash led to investigations and an arrest warrant issued for founder Do Kwon. Luna which rebranded to Luna Classic has struggled to build traction.