Several Terra supporters and advocates sought a wallet to destroy the extra LUNA supply in order to minimize hyperinflation, and have since sent millions of tokens.
Do Kwon, co-founder and CEO of Terraform Labs, has finally agreed to share a wallet to burn LUNA’s hyperinflated circulating supply of approximately 6.5 trillion tokens. While he remains opposed to the notion, Kwon has shared a LUNA and TerraUSD (UST) burn address on Twitter.
The algorithmic stablecoin UST’s recent death spiral is one of the largest tragedies in crypto history, degrading tens of billions of dollars in a matter of days.
Do Kwon responded by proposing a plan to restore the ecosystem. The proposal describes intentions to split Terra into two blockchains: the existing chain, which will be dubbed Terra Classic in the future, and the new chain, Terra without UST. The chain split will be followed by an airdrop.
Over 80% of individuals who have staked LUNA support the Terra system being rebuilt without the algorithmic stablecoin. Many community members and investors, including Binance’s Changpeng Zhao, are openly opposed to the hard fork, as has been extensively documented.
Do Kwon claims that his top concern right now is to ensure that the Terra community “has a place to create and that years of their labor is not wasted.” This is most likely why he caved down and disclosed both LUNA and UST burn addresses. Any LUNA or UST tokens delivered to this address will be removed from circulation indefinitely.
Burning tokens, according to the Terra creator, is a bad idea because “nothing happens except you lose your tokens.”
According to bitquery.io data at the time of writing, the LUNA burn address had received 278.47 million tokens. While this amount is insignificant in comparison to LUNA’s 6.5T supply, it demonstrates that investors are willing to destroy their own coins in order to keep the price stable.