KuCoin Stakes 47.9B Terra Classic, Increasing Total Staked LUNC to 946B
The move from KuCoin increased the staked tokens to 13.80% of Terra Classic’s total supply.
KuCoin, a prominent Seychelles-based cryptocurrency exchange, has once again become a validator on the Terra Classic (LUNC) network, as it recently staked 47.9 billion LUNC tokens at once, increasing the total number of staked tokens to a whopping 946 billion, which represents 13.80% of the asset’s total supply. This comes up two months after they undelegated 48B tokens.
The development was recently brought to public light by Rex Harrison, a notable LUNC community member and senior member of the autonomous development group TerraCVita. Rex teased the move as a factor that could contribute to “a massive boost of confidence in LUNC,” highlighting its importance.
Kucoin Stakes 47.9bn ($8.7m)
This is a massive boost of confidence in #LUNC
Raising total staked by 0.8% to 13.8% and total staked to 946bn.
Nearly 1 trillion total removed from circulation. pic.twitter.com/pyCWjsyMJx
— Rexyz (@RexYellerBelly) February 8, 2023
While token burns remain one of the Terra Classic community’s foremost targets, staking also goes a long way in assisting with reducing the asset’s circulating supply. KuCoin’s move took 47.9 billion LUNC out of circulation at once, which should support the asset’s price action.
Additionally, due to KuCoin’s position as one of the biggest exchanges in the crypto scene, this development should trigger a resurgence of investor confidence in Terra Classic. LUNC influencer Classy also pointed out the significance of the move. “One of the largest centralized exchanges KuCoin, has now entered the LUNC chain once again as a validator,” Classy remarked in a tweet today.
One of the largest centralized exchanges #KuCoin has now entered the $LUNC chain once again as a validator 👀 pic.twitter.com/kAqtr4ANma
— Classy 🔮 (@ClassyCrypto_) February 8, 2023
Data from Smartstake reveals that the KuCoin node’s voting power of 47.9B tokens represents 5.09% of the total voting power on the network, placing it fifth on the voting power rank among validators. Moreover, the node has five unique delegates at the time of reporting. The recent development comes a few days after LUNC hit 200,000 unique delegates.
Recall that KuCoin, one of the top validators on the Terra Classic network, suddenly unstaked all its 48 billion delegated LUNC tokens last December without any prior announcement. The move triggered concerns among investors as questions arose on whether they were going insolvent or wished to move away from token delegations. The exchange also unstaked its ATOM and LUNA tokens.
Shortly after, KuCoin responded to the questions raised, disclosing that they had to undelegated the tokens due to a switch in the pledge node of their internal financial accounts, assuring the community that they would re-delegate the tokens soon.