Crypto News: Do Kwon Shares LUNA Burn Address Warns ‘LUNAtics’ Against Using It

Crypto News – Many questioned the usefulness of a hard fork in restoring the dropped values of Terra (LUNA) and TerraUSD (UST) tokens, as revealed by Do Kwon.

iexclusivenews reports that the co-founder, and CEO of Terraform Labs. Instead, some members of the community suggested that the best way to make a return was to burn LUNA. 

This online news outlet understands that to save the Terra ecosystem. Do Kwon proposes hard forking the Terra blockchain without the algorithmic stablecoin. And dispersing a fresh version of the LUNA tokens to investors based on a historical snapshot taken before the death spiral. However, several crypto entrepreneurs, like Changpeng “CZ” Zhao, have said: 

“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.” 

Kwon went against his original intention on Saturday and publicly published a burn address for LUNA in response to constant requests from the crypto community.  

Every LUNA token received to this address will be instantly burnt, significantly lowering the LUNA token quantity in circulation. 

Do Kwon maintained his position two days after disclosing the LUNA burn address, adding, “Reducing the circulating supply of LUNA coins would have no influence on the market price?” “Nothing happens except that you lose your tokens.” 

To clarify, as I’ve noted multiple times i dont think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens

Want there to be no confusion whatsoever https://t.co/GrzG9cclAr

— Do Kwon 🌕 (@stablekwon) May 23, 2022

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What You Need To Know

The Terra co-founder clarified that the burn address was shared with users only for information purposes and warned against using 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.” 

However, iexclusivenews Nigeria reports that the news caused even more consternation among investors. As previously reported by Cointelegraph, LUNA’s extreme volatility presents a lucrative opportunity for investors looking to recoup their losses while others look for successful deals. 

iexclusivenews reports that investors think a burning mechanism will boost LUNA’s price due to scarcity, as Kwon previously indicated. 

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Investors are encouraged to avoid making hasty financial choices while the master plan for Terra restoration is still being scrutinized by the public. 

Numerous projects tried to relocate to alternative blockchain ecosystems struggling for life as a direct result of Terra’s failure. By recently enrolling Tracer, a Web3 fitness and lifestyle app, Near Foundation also contributed. 

However, iexclusivenews Nigeria reports that Near Foundation’s Nicky Chalabi told Cointelegraph that initiatives like Tracer aim to accord with the ecosystem’s basic ideals, noting that: 

“Projects must watch the interests of their community and users because, in the end, that’s the most valuable thing you have.” 

Chalabi went on to say that Terra projects should only move after evaluating the needs of their users and communities. “That can actually define your success.”