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The crypto market has been quite busy over the past month, not just in terms of bullish gains, but also in developments across major networks. Terra has been one of the networks striving to achieve value and has recently launched a token-burning initiative.
Through this burn, Terra seeks to burn more than 9% of the entire LUNA supply. This burn will be in line with the network’s roadmap towards an upgrade.
Burn Over 9% of LUNA’s Supply
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The co-founder and CEO of Terraform labs, Do Kwon, recently stated that the on-chain voting process for proposal 44 would be launched on October 27, with the voting process lasting for two weeks.
Burn proposal submitted on @terra_money Agora: https://t.co/Ufq6V9dofj
— Do Kwon 🌖 (@stablekwon) October 25, 2021
Onchain avail for voting in 48 hours. https://t.co/Ng2ds9RizS
The proposal seeks to burn around 88,675,000 LUNA tokens, which will be removed from the existing supply. This move will cut the supply of LUNA tokens by over 9%. The burned tokens will be used to mint 3 to 4 million UST.
The network recently launched the cardinal upgrade that is known as Columbus-5. This upgrade will lead to the community pool being swapped for UST, Terra’s native stablecoin. The Minted UST will support the development of Ozone, a form of insurance system in case of technical failures on the Terra ecosystem.
Following this upgrade, 10 million LUNA tokens will be retained in the community pool. Kwon further stated that the upgrade would lead to a five-fold increase in LUNA staking rewards.
Total Value Locked on Terra Increases
The upgrades on Terra’s networks have been having a positive effect on adoption. Last week, the network integrated the IBC protocol and launched Wormhole V2. These upgrades have increased network activity, with the total value locked (TVL) reaching new all-time highs.
Among the most dominant protocols in the Terra network are Anchor, Lido, Terraswap, and Mirror. Last week, the TVL on the network surpassed $10 billion, with these four projects accounting for over 90% of the entire figure.
Data from DeFiLlama, a Defi tracking website, shows that Terra ranks fourth in the size of TVL after Ethereum, Binance Smart Chain, and Solana. This depicts major growth on the network.