A Top DeFi Protocol Is Considering A Return To Terra Classic (LUNC): Details
Prism protocol tweeted on Sunday that it could be interested in rejoining the Terra Classic network following the community’s adoption of the 1.2% tax burn proposal on on-chain LUNA Classic (LUNC) transactions.
“Who would like to see @prism protocol working again on Terra Classic after the burn changes?” Prism wrote to gauge the reader’s interest.
Who would like to see @prism_protocol working again on Terra Classic after the burn changes?$LUNC $USTC
— PRISM (@prism_protocol) September 11, 2022
Prism was one of the most well-liked decentralized finance (DeFi) protocols on the Terra network, which is worthy of note. The derivatives protocol offered liquid yield tokens on staked LUNA tokens, enabling users to manage risk in a more resource-efficient way. Before the collapse of the Terra ecosystem, Prism had a Total Value Locked (TVL) of $800 million, $70 million in liquidity, and $3 billion in yearly trade volume at its peak.
Users’ Reactions to Prism’s Tweet
Interestingly, Prism’s Sunday tweet attracted mixed responses. Some users were happy since it was great news for the Terra Classic network, but others said they wanted the protocol to concentrate its efforts on Terra 2.0.
Notably, LUNC has recently witnessed an increase in demand that has driven its price and helped it move from 206 in the market cap rankings to the top 30 cryptocurrencies. The LUNC community is working to reduce the excess LUNC supply via burn activities to bump up the asset value, which has sparked a fresh wave of interest. The most recent move in this direction is its proposal for a 1.2% tax burn, which has already won the approval of several prestigious exchanges, including Binance.
The reintroduction of DeFi protocols and decentralized apps (dApps) could change all of that, notwithstanding the popular Terra whistleblower FatMan’s assertion that the current LUNC price increase is unsustainable owing to a lack of value.
Max Callisto, one of the LUNC DAO CEOs, has proposed re-enabling the Inter Blockchain Communication (IBC) protocol, allowing interactions with other Cosmos chains and unlocking liquidity that users can channel to dApps. It is important to note that IBC was switched off on Terra Classic after the collapse of the Terra ecosystem to protect liquidity pools from transient losses.
Last Tuesday saw the commencement of the 1.2% tax burn vote. The community will apply the parameter change at a block height of 9475200, according to LUNC Burn, an unauthorized channel that tracks LUNC burn activity, adding that it will happen in nine days.
On-chain 1.2% burn tax start blockheight:
current: 9341990
upgrade: 94752009d 6h 0m until burn starts 🔥🚀#LUNC #LUNACLASSSIC
— LUNC Burn (@LunaBurn_13) September 12, 2022
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