Existing Luna holders will be allocated Luna 2.0 via an airdrop at the new Terra chain’s launch.
With a supply of 1 billion, the airdrop allocations are as follows:
- Pre-attack Luna holders: 35%
- Post-attack Luna holders: 10%
- Pre-attack aUST holders: 10%
- Post-attack UST holders: 15%
- Community Pool: 30% (with 10% for developers) controlled by Luna stakers.
The TerraForm Labs wallet will also be removed from the whitelist for the Luna airdrop event. This is intended to ensure Terra becomes a “fully owned community chain”.
By burning the Luna, holders hope this will increase the scarcity of their coins, pushing the price back towards $1. However, with the supply increasing 1700% in a few days, a major burn would be needed to restore this price.
This seems to be the method favoured by Binance CEO CZ. He has remained in close contact with the Luna team ever since the partial Luna delisting on Binance.
Not everyone in the cryptocurrency community is in favour of a Luna burn. With some Luna holders calling for TerraForm Labs or the Luna Foundation Guard to buy and burn the supply, users have questioned where these places would get the money to do such huge burns from.
Indeed, Do Kwon has now come out and said TerraForm Labs does not have the funds or coins to burn the Luna circulating supply. “Once again, we don’t have that kind of money,” he said.
A Luna burn of its supply is just one proposed idea to help the Luna recovery, but could it happen?
With the Luna crypto crash seeing the Luna circulating supply skyrocket to over 6.5 trillion coins, several holders want to see a Terra Luna burn to decrease this supply and potentially increase its value.
Much like the success of Shiba Inu burns among the SHIB community, will holders be successful at implementing Luna burns?