The co-founder and CEO of Terraform Labs, Do Kwon, has shared a token burn address for LUNA to reduce circulating supply and boost the value due to community demand.
The executive has cautioned users that the burn token will not necessarily boost the value of the tokens but will only cause users to lose their assets. Kwon is bowing to pressure after notable entrepreneurs, including Changpeng Zhao, recommended a burn instead of a fork.
The announcement comes after the executive announced plans for a hard form to revive the Terra network causing concerns about its effectiveness.
Do Kwon plans to fork the current Terra blockchain without the algorithmic stablecoin. A new version of the LUNA tokens will then be distributed to the holders as per the historical data before LUNA collapsed.
Kwon earlier noted that Terra blockchain was no longer minting new tokens causing investors to move to burn their tokens. The collapse of Terra tokens has caused investors to move to other chains.
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— Do Kwon 🌕 (@stablekwon) May 23, 2022
Want there to be no confusion whatsoever https://t.co/GrzG9cclAr