Stablecoin issuer Terra (LUNA) is experiencing a massive price increase months after the protocol’s stablecoin was delinked from the US dollar and lost over 99.9% of its value.
Rival Ethereum (ETH) soared from $1.96 to $5.94, an increase of over 200%, in just 24 hours after Terra Luna Classic (LUNC) announced support for token registration, the rebranded version.
LUNA has since retreated and is trading at $5.73 at the time of writing.
Earlier this week, crypto exchange platform KuCoin announced that it will support the LUNC community’s 1.2% burning tax proposal.
The burning proposal will increase taxes on users of the Terra blockchain to 1.2% as a means of burning tokens.
“This proposal initiates the tax for all on-chain transactions as first described in proposal 3568 (for the 1.2% burn) and proposal 4159 (distribution of v22). Taxes will be charged and burned for activity on-chain, such as sending between wallets and smart contracts that interact with the chain.”
In August, the LUNC Decentralized Autonomous Organization (DAO) was created. The protocol says the DAO was created to revive the chain after it collapsed.
“Three months ago we saw the potential for LUNC to rise like a phoenix from the ashes. This is why we created LUNC DAO, to inspire the community to revive the chain. The stake milestone was reached today. If we can achieve this in three months, imagine what we can achieve in a year.”
News of the tax burn proposal sent LUNC soaring, rising from $0.000241 on September 4 to $0.000584 on September 8, also up more than 200%. It has since stabilized and is changing hands for $0.000439 at the time of writing.
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Featured image: Shutterstock/Bryan Vectorartist