• Do Kwon Advises Against Burning LUNA Days After Sharing a Burn Address

  • Do Kwon reversed his position two days after sharing a LUNA burn address, stating that burning LUNA will not improve the Terra ecosystem.

    The crypto industry suffered a major setback earlier this month when Terra’s algorithmic stablecoin UST depegged from the US dollar, causing LUNA to lose 99.9 percent of its value.

    Do Kwon, CEO of Terraform Labs, proposed a Terra ecosystem revival plan shortly after the crash. It centered on forking the current chain, abandoning UST, and creating a new token that will be distributed to investors in proportion to their losses during the catastrophic event.

    Do Kwon Discloses His Burn Address

    Members of the crypto community were skeptical of the proposal, suggesting that Terra burn LUNA instead to reduce the asset’s circulating supply.

    As the community’s pressure grew, and the hashtag #LunaBurn trended on Twitter, Kwon decided to fulfill the people’s wishes on Saturday, May 21.

    He shared a LUNA burn address, which would automatically burn any LUNA tokens sent to it, effectively reducing the market’s circulating supply.

    Do Kwon Performs a U-Turn

    Interestingly, Kwon tweeted two days later that sending LUNA tokens to the burn address he had sent earlier would have no effect on the digital asset’s state. He then advised LUNAtics (the slang term for LUNA investors) not to send their tokens because they would be lost.

    “To clarify, as I’ve noted multiple times I dont think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens. Want there to be no confusion whatsoever,” Kwon said.

    Despite his claim that he didn’t want to cause confusion, publicly disclosing a burn address and advising against sending tokens to the burn address two days later had already caused confusion. One user pointed this out and asked Kwon why he had shared the burn address in the first place, given that he claimed it was pointless.

    He responded by saying:

    MEXC Continues With LUNA Burn Plans

    Meanwhile, the Singapore-based cryptocurrency exchange MEXC Global intends to launch a LUNA buyback and subsequent burn. The fees generated by LUNA/USDT spot trades will be used to purchase LUNA in the secondary market, which will then be burned. The plan’s execution, however, will be determined by the outcome of community votes.

    “MEXC is delighted to offer a special recovery plan dedicated to the LUNA community. We need your decision in deciding whether we should buy back LUNA and proceed with LUNA burn in order to decrease LUNA circulation on the market,” the exchange said.

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