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$4.5 Billion LUNA Burns: Popular Altcoin Price Challenges ATH

$4.5 Billion LUNA Burns: Popular Altcoin Price Challenges ATH

Terra reports that it will burn $4.5 billion worth of LUNA from the community pool. The decision came through Terra’s on-chain management system. Terra (LUNA) is trading at $52 as of the writing of this article.

Details of the Combustion Process

According to Twitter announcements, LUNA was burned, replacing Terra’s native stablecoin with UST. The burning took place every 800 blocks created by the smart contract-based project. The UST stablecoin generated from burning will be distributed to the community pool while reallocating it. This massive burn will increase boost stake rewards while simplifying algorithmic altcoins rather than complex economics.

As with cryptocurrencies, the burning of large amounts of tokens often causes a price increase. After the announcement on Terra’s official Twitter feed, the LUNA price has already started to rise and has risen over 7% in the last 24 hours to touch $53.

Terra will use LUNA to launch the decentralized insurance system Ozone, according to management recommendations 133 and 134. However, how much of this will be allocated for boot will be determined after the 88.7 million token stock is burned. The popular altcoin continues its course above $50 as it moves to the $54 ATH level after the news.

Terra (LUNA) Aims for an All-Time High

LUNA recorded an all-time high, reaching $54 about 5 days ago. Gaining momentum with the news of the burn, LUNA continues its struggle to stand out from the general market trend. Holding the twelfth flag in the CMC market value ranking, LUNA draws attention with its active work.

Expert analysts place Terra (LUNA) on their list of cryptocurrencies to watch.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton Theblockchainnew.com he is the editor-in-chief of the news portal. Blockchain is love.

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