Do Kwon shares LUNA burn address, but warns users not to use it

Terraform Labs co-founder and CEO Do Kwon’s recent announcement of Terra’s revival plan received mixed reactions, as many questioned the effectiveness of the hard fork in restoring the falling LUNA and UST token prices. Instead, part of the community suggested burning LUNA tokens as the most logical way to achieve recovery.

Kwon's proposals to protect the Terra ecosystem include, in the absence of an algorithmic stablecoin, hard forking the existing Terra blockchain and reallocating a new version of the LUNA token to investors based on historical snapshots prior to the death spiral. currency. However, several crypto entrepreneurs, including Changpeng Zhao, argue that:

"Reducing supply should be done by burning, not forking on an old date and abandoning everyone trying to save the token."

Following continued demands from the crypto community, Kwon went against the original plan and publicly shared LUNA’s burn address on May 21. Every LUNA token sent to this address will be destroyed immediately, effectively reducing the circulating supply of LUNA tokens.

Two days after disclosing the LUNA burn address, Kwon once again stated that reducing the circulating supply of LUNA tokens will have no impact on market prices, saying, “Nothing will happen except losing tokens.”

The Terra co-founder clarified that the burn address is for user reference only, and warned users not to use it:

"I'm happy to provide information, but I want to clarify that you shouldn't burn tokens unless you know what you're doing - I personally don't get it."

However, the disclosure of this news brought more confusion to investors. As previously reported by Cointelegraph, wild volatility in LUNA presents a lucrative opportunity for investors, as many try to cover their losses while others eye lucrative trades.

Kwon previously confirmed that Terra is no longer minting new LUNA tokens, which is one of the main reasons why investors believe that the burn mechanism pushes up the price of LUNA because of its scarcity.

With an unclear roadmap to a solution, investors are advised against making sudden financial decisions, as the master plan for Terra's revival is still under public scrutiny.

As a direct consequence of Terra's collapse, many projects sought to migrate to different blockchain ecosystems, fighting for survival. The Near Foundation has also recently played its part, moving into Web3 fitness and lifestyle app Tracer.

Speaking to Cointelegraph, Near Foundation’s Nicky Chalabi emphasized that projects like Tracer seek to align with the core values of the ecosystem, while saying:

"Projects have to focus on the interests of the community and users, because in the end, that's the most valuable thing you have."

Chalabi further suggested that the Terra project migrate only after considering the interests of its users and the community, saying: "That can actually define your success."

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.