Players themselves 'burn coins' hoping for Luna to increase in price

 Many Luna owners invite each other to destroy their tokens to help the price of Luna coins increase again.

This movement started to emerge on May 21, after a user named Roncin Antoine offered to support founder Do Kwon in "burning" tokens. "Give me the address of your wallet to burn Luna, we'll do it for you," wrote Antoine.

"Burning" is the term for sending tokens to a dead wallet address, in order to get this amount of tokens out of circulation. Once there, the supply decreases, causing the value of each token to increase.

In response to Antoine, Kwon made this wallet address public. It then spread across the Luna communities and was widely followed. #BurnLuna became a trending keyword on Twitter, with over 18,000 tweets talking about the topic.

In the discussion about Terra on the Reddit forum, users said they burned more than 85 million tokens on May 22. On Roncin Antoine's post, many people shared screenshots showing that they burned from a few tens to several hundred thousand of these tokens. According to the value of Luna coin on April 22, 100,000 Luna is equivalent to nearly 20 USD, which means that each Luna owner gives away from a few to several tens of their own dollars.

On the morning of May 23, Antoine said there were 247 million Lunas burned in the previous 24 hours, equivalent to 47,000 USD. According to data from the Bitquery system, nearly 2.5 thousand transactions transferred Luna to the aforementioned burning wallet, with more than 276 million tokens, as of the afternoon of May 23.

The number of token transfers to the Luna burning wallet increased sharply after this address was shared by Kwon. Photo: Bitquery
The number of token transfers to the Luna burning wallet increased sharply after this address was shared by Kwon. Photo: Bitquery

However, this is still a small number compared to the total supply of this cryptocurrency. According to figures on Coinmarketcap, the market currently has more than 6.5 trillion Luna. Antoine urges people to burn about two trillion Lunas to change the price of this digital currency. “If you hold billions of Lunas and think the price will go back to $1, that is not possible with current trading volumes,” wrote Antoine.

In fact, following the above call, the Luna token doubled in price, from $0.0001 to over 0.0002 per coin. Trading volume also more than quadrupled, to $2.2 billion on May 22. However, the price increase is believed to be due to objective reasons, not just the result of the aforementioned token burn.

The act of self-burning tokens also met with mixed opinions. Besides the supportive comments, others think this action is meaningless, because small investors hold less than 1% of the total supply of Luna. Some doubt whether the wallet address Kwon sent is really a dead wallet, or that the money people "burn" will benefit the project owners themselves.

Do Kwon himself does not believe in the effects of token burning. "I don't think sending tokens to this address to burn is a good idea. You will lose your tokens in vain," Kwon tweeted on the morning of May 23, claiming he had warned many times about the issue. .

After the above message, many people continued to react negatively to Kwon when he shared the address to burn tokens, but said they did not work. "People keep asking about the address. Happy to provide for informational purposes, but wanted to make it clear that you shouldn't burn unless you know what you're doing," Kwon wrote.

Before that, burning tokens was also one of the options Kwon offered in the plan to revive the Terra project. According to the proposal, they will burn almost all of the existing Luna and keep only one billion tokens. However, the Luna development team currently holds a very small amount of tokens, so it cannot be burned for efficiency. Another proposal is to fork the project and create a new Luna coin. The plan is currently in the voting process, with results expected on May 25.

The Luna community has also proposed another option, which is to increase transaction fees by 10% with Luna coin. Meaning, users who transfer 100 Luna will only receive 90 coins, the remaining 10 coins will be burned. However, Kwon vetoed this option because it was complicated and would slow down transactions.

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