Why Influencers Who Say “Don’t Trade Your LUNC” Are Responsible for the Falling Burn Rate
Many Terra Classic supporters are frustrated as the LUNC burn rate keeps dropping every day. Ironically, some of the same voices who claim to support the burn are the ones slowing it down.
The Misleading Message Behind “Don’t Trade LUNC”
Influencers often say, “Don’t trade your LUNC with any Layer 2 tokens because LUNC will go to $1.” While this sounds positive, it is actually damaging to the network’s burn mechanism.
Let’s break down the facts:
- LUNC has a tax burn system that burns a portion of every on-chain transaction.
- The burn rate continues to decline daily.
- The biggest burns this month came from Binance and large wallet transfers, not from everyday trading.
Why This Advice Hurts LUNC
Those promoting “just hold and do nothing” or posting random wallet screenshots claiming “Binance burned again” are spreading false signals. The truth is simple: when trading volume drops, the burn rate falls.
Large burns only happen when major wallets move tokens or when Binance completes its monthly program. That means daily community trading activity is the main driver of consistent burns.
The tax burn mechanism only works if there are frequent on-chain transactions. Discouraging trading or avoiding Layer 2 tokens reduces transaction volume, which directly cuts the burn rate.
The Real Way to Support LUNC Burns
If the goal is to reduce LUNC’s supply, more trading is essential. Every transaction contributes to burning. Waiting without action will not revive LUNC.
Layer 2 tokens are designed to encourage activity and offer new opportunities. Trading them not only grows individual holdings but also helps burn LUNC at the same time. Meanwhile, staking LUNC with a 5% to 6% APR offers slow returns with minimal effect on supply.
The Truth the Community Needs to Hear
Everyone says they support the burn, but few understand what actually drives it. Talking about burns without participating in the ecosystem will not change anything.
Real support for LUNC means increasing on-chain activity, trading, and engagement with Layer 2 projects. Without that, the LUNC burn rate will keep falling and the dream of real recovery will remain out of reach.
