- The Terraport project will comprise a decentralized exchange that will allow users to trade assets on-chain as well as cross-chain.
- The developers of Terraport the treasury will buy back and burn billions of LUNC tokens every week.
Despite the collapse of the Terra ecosystem last year in May 2022, the Terra Classic (LUNC) network has managed to grab a few eyeballs with occasional price pumps at different intervals.
In the latest development, an independent Terra Classic development group TerraCVita released its whitepaper for the decentralized finance (DeFi) project dubbed Terraport. The whitepaper reveals that the Terraport project will comprise a decentralized exchange that will allow users to trade assets on-chain as well as cross-chain.
Besides, the Terraport project would comprise of launchpad so that users could fund projects as well as a lottery game for entertainment. Rex Harrison AKA Rexzy, a senior member of the TerraCVite project has often promoted the project as a Terra Luna Classic (LUNC) furnace implying that it would significantly contribute to LUNC burns.
As per the TerraCVita team, the treasury will buy back and burn LUNC with 27 percent of all fees received every week. The whitepaper also shows that developers think that the project has the potential to burn billions of LUNC tokens every week.
Besides, the treasury will also conduct weekly burns of the protocol native token TERRA, thereby creating enough scarcity which would significantly increase the token’s value over time. The TerraCVita team explained:
The treasury will be responsible for reducing circulating supply of LUNC and TERRA by swapping 27% of the available funds into LUNC and 22% into TERRA, respectively, then sending the assets to the burn address,” the team wrote. “This will make it possible to greatly reduce the amount of TERRA in circulation over time by increasing its value and at the same time reduce the LUNC circulating by performing weekly burns of several billion.
Will LUNC Hodlers profit?
The collapse of the Terra ecosystem last year has brought a very bad reputation to the entire Terra ecosystem. Despite the launch of Terra Luna Classic, there are not many acceptors for the same.
The burning of billions of LUNC tokens could certainly drive the prices higher, however, it remains to be seen to what extent. Currently, the total circulating supply of LUNC stands at 5.9 trillion tokens.
TERRA, the protocol native token for TerraCVite, has a total of 1 billion tokens in the max supply of which 2 percent supply was allocated for builders. Via the TERRA DAO, TerraCVita has left the protocol’s governance to the community. At the same time, users can participate in governance by holding the governance token xTERRA. The team wrote: “
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ERRA holders will receive a counter value of xTERRA usable in governance.
