Terra Classic (LUNC) has quadrupled in price over the past two weeks due to hopes of reviving the project, previously one of the market’s top 10 by capitalization. Such expectations stem from the creation of the LUNC DAO by a group of developers who have been on the project’s team since its creation in 2020.
On August 26, the v22 offering was activated, allowing users to vote on the network’s development and delegate tokens to staking with a 37.8%-42% APR return, according to Staking Rewards. A burning mechanism has also been implemented. The community is willing to consider taxes that would also help reduce supply after each interaction with a smart contract or wallet-to-wallet transfer. The latter would artificially cut supply by supporting prices, however, it wouldn’t work without a demand component.
The surge is due to the price collapse following the ecosystem’s crash in May. LUNC was trading at $119.18 at its peak, and we can’t exclude the continuation of active growth, based largely on the emotional attachment to the project, which to some extent, survived even after the notorious events. This surge is possible due to the continued efforts of developers, who are following the “revival” rhetorics on Twitter and Telegram. But one must be fully aware of the risks of the game.
May’s events have irreparably damaged LUNC’s reputation. Developers may lose enthusiasm as most of their colleagues have migrated to BNB Chain and Polygon. There’s actually no on-chain activity. The asset’s of interest to speculators, while its actual usefulness remains questionable.
