Terra has reported that it will burn $4.5 billion worth of LUNA from its community pool. The decision came about through Terra’s on-chain management system. Terra (LUNA) As of the moment of writing this article, it is trading at 52 dollar levels.
Details of the Burning Process
According to Twitter announcements, LUNA was burned by replacing Terra’s local fixed crypto currency with UST. The incineration process took place in every 800 blocks created by the smart contract-based project. The UST fixed crypto money generated from the incineration will be distributed to the community pool while being reallocated. This massive burn will increase boost stake rewards while simplifying algorithmic altcoins rather than complex economics.
A large amount of token burning, as in the case of cryptocurrencies, often leads to an increase in prices. After the announcement on Terra’s official Twitter feed LUNA its price has already started to rise and has increased by more than 7% in the last 24 hours, touching $ 53.
Terra according to management recommendations 133 and 134, the decentralized insurance system will use LUNA to launch Ozone. However, how much of this will be allocated for booting will be determined after the burning of 88.7 million token stocks. The popular altcoin continues its course above the 54 dollar as it moves to the 50 dollar ATH level following the news.
Terra (LUNA) Is Aiming For an All-Time High
LUNA, which had reached an all-time high of $54 about 5 days earlier. LUNA, which has caught momentum with the news of the burning, continues its struggle to stand out from the general market trend. LUNA, which holds the twelfth place flag in the CMC market value ranking, is noted for its active work.
Expert analysts, Terra‘ya (LUNA) is on the list of cryptocurrencies that need to be followed.