Terra founder Do Kwon recently tweeted that burning LUNA tokens was not a smart idea.
Despite providing customers with a burn address, he advised that “nothing will happen” if they destroyed their tokens.
Luna’s circulation supply jumped from 340 million to 6.5 trillion in just a few days in early May.
The de-pegging of the TerraUSD (UST) stablecoin resulted in circulating supply inflation.
Due to poor demand, the UST stablecoin failed to restore its peg despite large supply increases.
Meanwhile, the hyperinflationary LUNA token’s price plummeted to almost nothing, leaving investors in the dust.
In order to resuscitate the ecosystem, Kwon has recommended forking the chain. The idea, however, gets amendment in the middle of the voting, causing significant controversy.
Due to a technical glitch, a separate proposal to burn 1.4 billion UST from the community pool failed, but it was resubmitted.
Many spam proposals on the Station generate congestion due to enormous inflation.
Meanwhile, the Seoul Southern District Prosecutors’ Office said lately that it has begun an investigation into Terraform Labs.
In addition, the Terra founder gets a total of 100 billion WON($78 million) for tax evasion.
Kwon, on the other hand, turned to Twitter on Saturday to contradict media claims, stating that his company owes no taxes in South Korea.
According to media sources, Terraform Labs also lost its whole legal team last week. Kwon acknowledges “a number of people” lost.
Related Posts – The Indian Finance Minister hails blockchain technology
