• DFLunc, a Terra Classic project, has burnt over 1.6 billion LUNC tokens in two weeks due to its burn mechanism.
• Binance has already burned 31.83 billion LUNC tokens while DFLunc has burnt 1.6 billion LUNC tokens.
• The DeFi protocol requires more LUNC to be burned the more it is staked via the validator, and there are currently 57.8 billion LUNC tokens that have been burned by the community as a whole.
The Huge Burn of Over 1.6 Billion LUNC
DFLunc, a popular new Terra Classic project, has burnt over 1.6 Billion LUNC tokens in only two weeks thanks to its huge LUNC burn mechanism. This brought the overall LUNC burn to more than 57.8B and surpassed Binance’s burn of 1.27B on May 1st as part of its monthly burn mechanism..
Deflating the LUNC Supply
The DeFi protocol is comprised of a collection of smart contracts and uses two CosmWasm-based smart contracts – DFLunc and CW20-DFC – which require users to exchange existing LUNC tokens for burn value in order to mint DFC tokens with USTC as protocol fees being paid for burning them.
Expanding Validator on Terra Classic Chain
The DeFi protocol’s overall strategy is broken down into intermediate goals, with one being expanding its validator on the Terra Classic chain; requiring more LUNCs to be burned the more it is staked via the validator as well as consuming them through contact address transactions .
Burn Mechanism Achieved By Community As A Whole
Overall, thanks to both Binance and DFLunc’s huge contribution towards burning billions of LULC tokens at once, this resulted in deflating the inflated circulating supply and achieved an overall result of 57.8 billion token burns by the community as a whole so far.
Conclusion
In conclusion, with interest in Terra Classic growing rapidly along with protocols such as DFLunc that help reduce inflation by burning billions of LULC tokens at once, this could result in even further deflation if continued throughout 2021 and beyond!