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- The significant LUNC burn executed by the protocol has raised the total LUNC burn to over 57.8 billion.
- On May 1st, as part of its regular LUNC burn process, Binance incinerated 1.27 billion LUNC.
DFLunc, a well-known new project within the Terra Classic ecosystem, has eliminated more than 1.6 billion LUNC tokens in just two weeks due to its extensive LUNC burn mechanism. Launched in April, the DeFi protocol aims to incinerate billions of LUNC tokens simultaneously, thereby decreasing the inflated circulating supply.
The substantial LUNC burn by the protocol has increased the total LUNC burn to over 57.8 billion. On May 1st, as part of its monthly LUNC burn process, Binance incinerated 1.27 billion LUNC.
DFLunc and Binance Making Significant Contributions
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Binance has reduced its LUNC supply by 31.83 billion tokens to date. On May 12, DFLunc announced via Twitter that it had burned over 1.6 billion LUNC, exceeding Binance’s burn of 1.27 billion LUNC at that time. With growing interest in Terra Classic, its community has already incinerated approximately 2 billion LUNC through the DFLunc Protocol.
The DeFi protocol utilizes a perpetual burn mechanism to deflate the LUNC supply and consists of a series of smart contracts.
New DFC tokens can only be generated by exchanging existing LUNC tokens for burn value, while the DFLunc Protocol acts as a validator for Terra Classic. Two CosmWasm-based smart contracts, DFLunc and CW20-DFC, are employed.
To mint DFC tokens, users must burn LUNC by paying USTC as protocol fees. The DeFi protocol necessitates a greater amount of LUNC to be burned as more is staked via the validator. The overall strategy of the protocol is divided into intermediate objectives, with the final goal being to expand its validator presence on the Terra Classic chain.
The protocol continues to consume LUNC through the contact address, as evidenced by the transactions. Currently, the community has collectively burned 57.8 billion LUNC tokens.
