LUNC, the token of the old Terra Chain, now Terra Classic, meanwhile seems to be getting all the attention it can get. According to the on-chain analytics firm Santiment, LUNC seems to be getting massive attention from the public as LUNC-related keywords topped searches on its social trends.
The biggest challenge $LUNC that will face in the coming months clarifies the incentives.
Who are the $LUNC whales? Who controls the network?
I can imagine it’s hard to attract projects to build on Terra Classic until the Rebels know who they’re working for.
— will chen 🚾🌖 (@stablechen) September 16, 2022
LUNC came back into the spotlight after a recent rally after the 1.2% tax-burning plan surfaced. However, the gains were reversed as traders took profits in the following days.
Terra (LUNA) and Terra Classic (LUNC) prices plummeted when a South Korean court issued a warrant for the arrest of Do Kwon, the network’s founder, and five others on Wednesday morning. The Terra founder is also under more pressure now that a request to revoke his passport has been sent to the country’s foreign ministry.
At the time of publication, both LUNC and LUNA had recovered some of their previous losses, rising 12.65% and 13.83% respectively in the past 24 hours.
While the legal hurdles remain for Terra tokens to overcome, Will Chen, an R&D developer at Terran One and former developer at Terra, believes there is another, bigger challenge lurking for Terra Classic. While Terra Classic claims to be community owned and completely separate from Terra founder Do Kwon, Chen asks some key questions: “Who are the LUNC whales? Who controls the network?” And how much property does ‘the community’ have against a few bad actors who bought themselves in at asymptotic prices?
He pointed to a bleak future for Terra Classic, saying it will be “hard to attract projects to build on Terra Classic until the rebels know who they’re working for.”
He goes on to say that the uncertainty of a 66% attack or market manipulation by someone who doesn’t have LUNC’s best interest in mind would make it difficult for developers to launch.
In light of the 1.2% tax burn plan, which several investors believe could be the only way to offset their losses, Chen said the biggest challenge for LUNC in the coming months is clarifying incentives. He further noted that the landscape of LUNC incentives takes time to settle.
Binance Updates Tax Burning
The 1.2% tax burn for LUNC and USTC is expected to go live at the Terra Classic block height of 9,475,200, or about September 21 at 10 p.m. (UTC).
Binance says that LUNC and USTC deposits from users’ deposit addresses in Binance hot wallets will be consolidated and subject to the 1.2% tax burn fee by the Terra Classic network once the burn tax is in effect.
It also says that it will adjust the withdrawal fees for LUNC and USTC as well as the minimum and maximum withdrawal amounts accordingly.
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