The survival of the Luna Classic (LUNC) ecosystem depends on various factors and strategies. Here are some key strategies to consider for LUNC’s revaluation and how these strategies can be backed up with numbers:
1. Reducing Supply (Burning):
• Current Supply: The current circulating supply of LUNC is around 6.9 trillion tokens after the crash.
• Burning Mechanism: Reducing the supply can increase the value of the token. For example, if 1 trillion LUNC tokens are burned, the total supply will be 5.9 trillion.
• Target: Drastically reducing the supply (e.g. below 1 trillion) could increase the market value of LUNC.
2. A Strong Community and Governance:
• Governance Votes: Community members can direct the ecosystem by voting on important decisions regarding the project. For example, a community vote can be held to approve a new burn mechanism.
• Community Participation: Increased participation in governance votes supports the long-term success of the project.
3. New Projects and Applications (Use Case):
• Developer Support: Adding new projects and dApps to the LUNC ecosystem can increase demand. For example, an application that will require 100 million LUNC tokens every day could contribute to a decrease in supply.
• Partnerships: LUNC’s integration with different blockchain projects and decentralized finance (DeFi) applications can expand the ecosystem’s usage area.
4. Re-fixing of USTC (Repeg):
• Supply and Demand Balance: The liquidity required to re-peg USTC to the dollar and burn LUNC can directly impact the value of LUNC.
• Target Price: LUNC burn rates may need to be increased for USTC to stabilize at $1. For example, 1 billion LUNC may need to be burned daily for USTC to stabilize at $1 again.
5. Rebuilding Trust:
• Market Cap: LUNC’s market cap is currently relatively low. Restoring confidence could increase its value in the long run. For example, when LUNC’s market cap reaches $5 billion, the price per token could increase significantly.
6. Extended Staking Programs:
• Staking Rates: Staking is an important mechanism that reduces token supply. If the LUNC community can stake 50% of the available supply, it could severely limit the circulating supply.
• Staking Yields: High staking yields can encourage users to hold LUNC, thus ensuring price stability.
7. Liquidity Pools and DeFi:
• Providing Liquidity: Liquidity pools such as LUNC/USTC or LUNC/ETH can increase the demand for LUNC.
• Target Liquidity: $1 billion of liquidity in liquidity pools could support the value of LUNC.
Conclusion:
In order for LUNC to survive, the supply needs to be significantly reduced, community participation needs to be increased, new use cases need to be created, and trust needs to be rebuilt. To put it in numbers, reducing the supply to under 1 trillion, increasing the market cap to $5 billion, and liquidity reaching $1 billion could help LUNC return to its former glory.#Binance #Lunc #USTC... #eth $ETH $USTC $LUNC
