Why did Luna Classic's price increase last week?

Why did Luna Classic's price increase last week?

Luna Classic (Lunc), the native token of the notorious Terra Blockchain, which imploded in May, has increased around 116 % of the price in the past 7 days.

The cryptocurrency briefly reached a market capitalization of $ 4 billion on Thursday and is therefore temporarily worth more than the token atom from Cosmos. At its climax in April, the original market capitalization of Luna was around $ 41 billion.

The Luna Classic development teams are on the newly launched version of Terra or other blockchains such as polygon and migrated Kosmos Ökosysteme and mainly serves as speculative meme cinema.

The price of lunc has probably increased due to the proposals of the community 3568 and 4159 , said Bobby Ong, co-founder and chief operating officer by Coingecko, opposite Blockworks. These suggestions enabled delegation and staking on the blockchain and introduced a tax rate of 1.2 % to each transaction.

"Proposal 3568 was first presented on [June 30] and this corresponded to an approximately 4-fold increase in the LUNC price the closer the proposal of the implementation," said Ong. "It is expected that the tax of 1.2 % at block height 9,475,200, probably on September 20th.

The tax of 1.2 % is charged on on-chain transactions-with the exception of the internal centralized stock market trade-and it is expected to reduce the Lunc range, which has increased significantly since the crash.

"dealers are enthusiastic about this and have rely on this reduction in the offer.

The Terra Community Governance also approved A separate proposal to reward. A community pool called for more than 19.5 million Luna for an Airdrop for users who had not received any proper assignment of the tokens when starting Terra 2.0.

Authorized users have a month between September 4 and October 4, 2022 to claim their airdrop. Any luna that remains at the end of the period is returned to the community pool.

Despite To increase the value of Lunc and its reputation, the price of the cryptoutril Stay volatile. Funding rates in the markets for eternal futures are extremely negative, which means that dealers pay expensive for the privilege, the cryptoasset to sell empty.

The pseudonymous route 2 FI, a researcher at Crypto Index Alongside, said on Twitter that "this market is nothing but irrational and crazy".

Many criticize the resuscitation attempt by the Terra Blockchain after the algorithmic stable coin terrausd was dramatically decoupled from the US dollar-which led to a collapse of the crypto industry and the bankruptcy of several crypto credit companies.

"It is amusing and disgusting at the same time how you continue with a new network," said the pseudonymous terra critic Fatanterra Twitter .

"The entire VAT fraud is blissfully ignored. This tactics will not work. We remember what Terra really was," he said.

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The contribution Why did the Luna Classic price increase last week? is not a financial advice.