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Do Kwon Shares LUNA Burn Address But Warns Users Against Using It

Anna Martynova

The recent plan to revive Terra, announced by Do KWON, co-founder and CEO of Terraform Labs, has received mixed reactions. Many doubted the effectiveness of the hard fork in reviving the fallen prices of LUNA tokens and the depegged stablecoin UST. Part of the community strongly recommended burning LUNA tokens in order to achieve a revival.

Do Kwon’s proposal to preserve the Terra ecosystem includes a hard fork of the existing Terra blockchain without an algorithmic stablecoin and redistribution of a new version of LUNA tokens to investors based on a historical snapshot before LUNA’s death. On May 21, Do Kwon publicly shared the LUNA burn address and clarified that the address is provided to users for informational purposes only and cautioned against using it.

Kwon previously confirmed that Terra is no longer issuing new LUNA tokens, which is one of the main reasons investors believe that the burn mechanism will improve the price of LUNA due to the scarcity. However, two days after the release of the LUNA burn address, Kwon reiterated his point of view that the reduction in the number of LUNA tokens in circulation would not affect the market price, stating that “nothing happens except that you lose your tokens.”

Image: Coinsnews

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