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Terra’s collapse has affected several projects and migrated to different blockchain ecosystems for survival. Near Foundation also had played its part by onboarding Tracer, a lifestyle app, and Web3 fitness. Nicky Chalabi from Near Foundations highlighted that projects like Tracer seek alignment with the ecosystem’s core values, stating:
“Projects must watch the interests of their community and users because, in the end, that’s the most valuable thing you have.”
The co-founder and CEO of Terraform Labs has recently announced the Terra revival plan and received mixed reactions for his plan. Many of them have questioned the effectiveness of a hard fork in reviving the lost price of Terra (LUNA) and TerraUSD (UST) tokens. And It was also recommended by few to burn LUNA as the most plausible way for an effective comeback
Whereas the revival process of Kwon involves hard forking of the existing Terra Blockchain without the involvement of algorithmic stablecoin. And redistributing the new version of the LUNA tokens to investors, depending on the snapshot history before the death spiral of stablecoin.
Crypto entrepreneur Changpeng “CZ” Zhao’s opinions on the revival plan, quoting:
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to reuse the coin.”
Kwon has publicly shared a burn address for LUNA on Saturday, in response to the requests from the crypto community. Helping them to burn the LUNA tokens immediately after receiving them on the given address reduces the circulating supply of LUNA tokens effectively. And this has no greater impact on the market price, as you will just lose your tokens, Kwon opinionated.
In addition to this he also clarified that the burn address is just used for information purposes and warns against its use of it:
“Happy to provide for information purposes but want to clarify that you should not burn tokens unless you know what you are doing- I for one cannot understand.”
The effect of revelation has created more confusion among investors, as LUNA’s insane volatility has served as a lucrative opportunity for investors. whereas few try to recoup their losses and others eye on profitable trading.
There is no minting of new LUNA, and the burning mechanism will improve LUNA’S price owing to scarcity. This is the reason the investors are believing in this Kwon’s burning mechanism.