Written by 8:02 pm Cryptocurrency

Are Luna Classic coins being burned? Yes, but not enough

Luna Classic coins

Billions of Luna Classic tokens are being burned each month, ever since Do Kwon revealed a burn address on the Terra Classic chain back in May.

The addition of a burn tax on Luna Classic (LUNC) back in September saw a huge increase in the burn rate.

But is it enough to create a LUNC price pump in the next 12 months?

Unless LUNC can learn a thing or two from hit altcoins like EverGrow, the answer is: not yet.

LUNC burn rate falls -49% in November

Data from the LUNC Burning Chart at Terrarity.io shows the LUNC burn rate fell -49% in November compared to October.

From a high of 18.8 billion LUNC burned in October, the figure falls to 9.2 billion in November.

This reduction reveals the impact of the LUNC community voting to reduce the original burn tax of 1.2% on LUNC trades (including on Binance) down to 0.2%. A further 20% of all burn funds were voted to be kept aside for ecosystem development.

So where does this leave Luna Classic burning?

If you’d hoped to see a $1 LUNC token in the near future, hope again. Luna Classic will take at least 54 years to burn through enough supply until a $1 price is within range. You’ll see why this is the case by looking at the market cap needed for LUNC to reach $1 at present:

  • $0.001 price – $6 billion market cap
  • $0.01 price – $60 billion market cap
  • $0.1 price – $600 billion market cap
  • $1 price – $6 trillion market cap

There’s no way LUNC can reach a $6 trillion market cap with the crypto industry itself valued under $1 trillion.

EverGrow burn rate up 350% in November

EverGrow burned through almost 1% of its circulating supply in November.

If you’re unimpressed by Luna Classic’s burn rate, take a look at what EverGrow is doing:

  • 2% of every transaction is used to burn EverGrow – meanwhile just 0.2% of every LUNC transaction is used to burn tokens
  • 100% of revenue from the multi-chain NFT marketplace LunaSky is used to burn EverGrow
  • 100% of the revenue from the upcoming Crator crypto-integrated social media app will fund EverGrow burning, as well as 100% of revenue from a wallet, swap and metaverse experience

Unsurprisingly, after burning 1% of the EverGrow supply in November the prices pumped 43%.

At the current burn rate, EverGrow will reduce its supply by up to 15% each year. Once the wallet, swap and metaverse experience launch in early 2023 the burn rate could likely double.

Read more about how EverGrow does it here: https://evergrowegc.com/

If Luna Classic could adopt some of the burn tactics used by EverGrow, there’s a good chance a $1 LUNC token could become a reality in the next 5 years.

But at present, there’s just not enough being burned to make it an bullish indicator to buy LUNC.

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