The Terra Classic (LUNC) tokens were staked with a nascent validator in uneven transactions over 24 hours.
A new Terra Classic (LUNC) validator has staked up to 13.98 billion LUNC tokens just 24 hours after its launch. This was achieved through uneven transactions involving redelegation events, mostly from LUNC ONE, a Chinese validator.
Information from a Terra Classic analytical tool suggests that the validator, identified simply as “DFLunc.app,” received up to 86 delegation transfers in 24 hours, starting May 1 at 12:03 (UTC).
While most transfers involved thousands and millions of Terra Classic tokens, a few involved billions of tokens. The earliest notable transaction saw a whopping 4.4 billion LUNC delegated to the validator. A few hours after that, another delegation of 1.6 billion LUNC occurred. These tokens were undelegated from LUNC ONE and redelegated to the new validator.
Given the nascence of the validator, some community members have advised caution to investors. However, the team behind the validator recently came up to dispel the growing concerns and share insight into their mission for the Terra Classic ecosystem.
1/ Protocol III COMING SOON!
Sinc our validator is live on Classic Chain,Over 10b LUNC staked with us. We decide to use all the profit from validator to reward users who staked DFC. So Protocol III come out.
— DFLunc Protocol (@DFClunc) May 1, 2023
The project has allegedly burned over 370 million LUNC in a few days, but there is limited information on its incineration exercise. The team behind the validator has also promised returns for investors who stake their native tokens. Despite its promise, investors are advised to conduct thorough research and exercise caution while committing funds.
Over 370m of $LUNC have been burned in the last few days
These burns are not from on-chain exchanges but from small transactions sent directly to the burns address “terra1sk06e3dyexuq4shw77y3dsv480xv42mq73anxu” by @DFClunc
Any project that burns as much $LUNC as possible is… pic.twitter.com/R0qiUw07Kd
— Cryptomane (@cryptomaneitaly) May 1, 2023
Terra Classic (LUNC) Supply Continues to Decline
Following the series of redelegations, the total amount of staked Terra Classic currently sits at 962.3 billion representing 14% of the total LUNC supply of 6.85 trillion tokens. The Terra Classic circulating supply has continued to decrease amid the sustenance of burns and staking events. Circulating supply now sits at 5.89 billion LUNC.
As previously reported by The Crypto Basic, the number of staked LUNC tokens stood at 901 billion as of Jan. 20. Barely four months later, over 60 billion extra tokens have been staked, further decreasing the asset’s circulating supply.
Meanwhile, token burns remain sustained, with contributions coming from all angles. Recently, Binance incinerated over 1.2 billion LUNC for April. This brought total burns from the exchange to a massive 31.83 billion LUNC. The latest USTC re-peg proposal that just passed also proposes to procure LUNC tokens and stake or burn them.
Moreover, Cremation Coin’s newly-launched project has kept its promise of contributing to the Terra Classic burns. Its latest burn occurred a few hours ago and involved over 9.4 million LUNC.
We’ve burned another 9.4M #LUNC this week. We need the LUNC community to get on board with CREMAT so we can continue to burn $LUNC! #bnb #bsc #binance #luncburn #lunccommunity $shib #shib #btc $btc #1000x #crypto #cryptocurrency #luncarmy #ETH $ETH #CREMAT #CREMATburn pic.twitter.com/N8yzADWyqM
— Cremation Coin 🔥Weekly LUNC Burns🔥 (@Cremation_Coin) May 2, 2023
The project has burned 94.58 million LUNC in six transactions within the past month.