Recently, 222 million LUNC tokens and 1.85 billion USTC were taken out of the circulating supply. This includes coins kept in escrow and those owned by the team or foundation.
On Saturday, the price of Terra Luna Classic ecosystem tokens soared significantly. This surge was sparked by the removal of a massive amount of tokens from circulation in the Luna Foundation Guard (LFG). Specifically, 1.85 billion USTC and 222 million LUNC tokens were taken out of circulation.
Tokens Removed and Circulation Impact
In a matter of hours, the price of LUNC surged by over 10%, and USTC saw an 18% increase before retracting their gains. This sudden surge was triggered by the removal of 222 million LUNC tokens and 1.85 billion USTC from the circulating supply. The decision was made due to the dormancy of the account for over two years.
As a result of this decision, the circulating supply of USTC now stands at 7.1 billion. It’s important to note that the coins in circulation exclude those held in escrow, as well as those in possession of the team or foundation. According to CMC (CoinMarketCap), assets locked via smart contracts, legally bound contracts, or allocated to insiders like teams or private investors are not considered part of the circulating supply, even if they become unlocked.
Circulating Supply Adjustments & Community Goals
The reported figures do not signify actual withdrawals from circulation but rather adjustments. There was an error in identifying certain Luna Foundation Guard (LFG) funds as part of the circulating supply. This misconception led to a frenzy within the community, with members rapidly purchasing LUNC and USTC, consequently driving up prices. However, once the news spread across the community, prices began to decline.
The Terra Luna Classic community aims to reduce the overall supply by burning USTC and LUNC tokens held in the LFG wallet. However, this objective has thus far resulted in mere adjustments rather than genuine deletions from circulation.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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