Terra’s Do Kwon says burning tokens is a bad idea
In a recent tweet, Terra creator Do Kwon said that burning LUNA tokens wasn’t a good idea.
Although he did provide users with a burn address, he warned that destroying one’s tokens is pointless since “nothing will happen.”
In early May, Luna’s circulating supply skyrocketed from 340 million to 6.5 trillion within just a couple of days.
The inflation of the circulating supply was caused by the de-pegging of the TerraUSD (UST) stablecoin.
Despite massive supply increases, the UST stablecoin failed to recover its peg due to low demand.
Meanwhile, the price of the hyperinflationary LUNA token collapsed to virtually zero, leaving investors in the dust.
Kwon recently proposed forking the chain in order to revive the ecosystem. However, the proposal was changed in the middle of the vote, which caused some controversy.
A separate proposal to burn 1.4 billion UST from the community pool failed due to a technical issue but it was then resubmitted.
Due to massive inflation, plenty of spam proposals on the Station cause congestion.
In the meantime, The Seoul Southern District Prosecutors’ Office recently announced that it had started investigating Terraform Labs.
On top of that, the Terra founder has been slapped with a 100 billion won ($78 million fine) for tax evasion.
On Saturday, however, Kwon took to Twitter to refute media reports, claiming that his company has no tax liabilities in South Korea.
Last week, Terraform Labs also lost its entire legal team, according to media reports. Kwon confirmed that they indeed lost “a lot of people.”