$LUNC Is Not Burning

Known Facts

SEC Settlement (2024): In June 2024, the SEC reached a $4.47 billion settlement with Terraform Labs and Do Kwon after a jury found them liable for securities fraud tied to the Terra/Luna collapse. The settlement—finalized in September 2024—required:

$3.59B in disgorgement

$467M in interest

$420M in penalties from Terraform

$110M in penalties from Kwon

Asset distributions are tied to Terraform’s bankruptcy proceedings. With interest, the total settlement ($4.55B) closely matches the $4.5B figure circulating online.

LUNC Token Supply: Terra Luna Classic (LUNC), the post-collapse rebrand, has a circulating supply of ~6.49 trillion tokens (as of mid-2025). Burning one-third of the supply would mean eliminating about 2.16 trillion

Past Burns:

As part of winding down operations, Terraform did burn 275B LUNC and 1B USTC by October 31, 2024.

Ongoing burns continue via a 0.5% transaction tax and Binance’s monthly burns (e.g., 1.7B $LUNC

in January 2025).

No large-scale, single-event burn of trillions of tokens has ever been ordered.

Bankruptcy Plan: Terraform’s bankruptcy plan, approved in September 2024, outlined distributions of $184.5M–$442.2M to creditors. Terraform’s declared assets (~$75M at filing) make any trillion-token burn financially impossible. The plan contains no reference to a 1/3 burn.