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In order to entice investors to return, LUNA Classic developers have included high yield staking rewards and token burning.
Following the implementation of efforts to revitalize the ailing network, LUNA Classic (LUNC) is up 70% from its August 20 low.
The original Terra Luna token's purpose was to absorb price fluctuations in the UST stablecoin. However, after UST's depreciation in May, Terra Luna has lost more than 99.9% of its value.
After rebranding in an effort to separate itself from the past, and with the recent implementation of new staking and token-burning capabilities, it's evident devs are actively working to reclaim investors' trust.
LUNA Classic Evaluation
Following issues with the Terra chain, the community approved founder Do Kwon's suggestion to fork the chain and establish Terra LUNA. On May 28, the first LUNA genesis block was created.
Meanwhile, the existing Terra chain has been renamed as LUNA Classic (LUNC) and continues to run the Terra ecosystem's original code. More importantly, it was turned over to the community for growth and control.
Despite Do Kwon's apparent departure, LUNA Classic still bears the weight of what transpired in the past. And, whether or unjustly, it is linked to the past.
Recent price action, however, implies that investors are inclined to forgive and move on. LUNC has risen 54% in value over the last 30 days and is up 70% from its local low on August 19.
Although the current price is only a fraction of the all-time high, the recovery plan appears to be piqueing the attention of the investing community.
What strategies would LUNA Classic employ to attract additional investors?
Token staking became available as part of the LUNC v22 network update. According to the most recent report from @LuncStaking Bot, dated August 30, over 402 billion tokens have been staked, representing about 6% of the supply.
When staking initially became available on August 27, the first update from @LuncStaking Bot stated that 182 billion tokens, or 2.6% of supply, had been staked - implying token holders had raised their staking by 120% in three days.
The average yearly payment rate, according to Staking Rewards, is 37.8%, which is among the highest staking rewards accessible. Unsustainable yields, however, remain a source of concern, particularly during periods of restricted liquidity.
To boost scarcity, developers have also included token burning. According to the LUNC Burner website, nearly 3 billion LUNC tokens have been removed from circulation to far.
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