KuCoin AMA with Terra Luna Classic (LUNC) – Everything You Want To Know About LUNC

2022/09/20 03:55:30

Dear KuCoin Users,

Time: 14:00 PM - 15:00 PM on September 15, 2022 (UTC)

KuCoin hosted a voice AMA session with Terra Luna Classic (LUNC) in the KuCoin Memecoins Group.


VegasMorph, Terra Rebels Community Lead

Edward Kim, Terra Technology Professor

Marventus, Frontend developer, Core team member

Zaradar, Backend developer, Core team member

Alicia, KuCoin Senior Partner


Naomi, KuCoin Branding Manager

Main Takeaways from the LUNC Team:

  • The 1.2% tax burn is just part of LUNC’s roadmap. Other plans include enabling the market swap that was disabled before. This will be supported by E23, which includes limited renewablement that will be released around Christmas.
  • The LUNC team plans to monitor the network during the on-chain burn, and hopefully to get some of the central exchanges onboard with the burn initiative. The team also looks to potentially repeg UST to 1.
  • The LUNC team will update to the new Cosmos SDK and Cosmos algorithm, which will provide the capacity to reopen the IBC chains and refurbish the reward system to centralized validators to achieve true decentralization of the network.
  • Any entity right now cannot have much influence on the running of the blockchain itself, it is safe even if TFL shuts down.

Q1: My concern is that the 1.2 percent tax burn is the hype-based mechanism and will eventually run out of steam as it seems like a buy the rumor & sell the news deal. What is Terra Luna classic gonna do to counter this?

Marventus: First of all, it's not Luna Classic itself that is doing something to counter that. It's the community. The community has a tool, that is, Terra Rebel, trying to do all the changes the community wants to see. One of the changes the community wanted more was to bring the max supply and the circulation supply from a lower level to a normal level before the whole crash. That being said, for the first board that united the whole community.

Yes, we have a lot of hype around this. There is a lot of marking that is being done. Example: the implementation of Proof of Stake. It is basically distinguished from a meme coin. The first utility the coin itself was designed for. So there are a lot of things being done. So it's not just 1.2%, 1.2% was the one that started everything, that's it.

Edward: I think a lot of focus recently has been on the 1.2% tax burn and like the economic results and factors that might happen from this. If we can turn the question around slightly because I think it's more of a symbolic gesture. Because if you have been following the story of Luna Classic after the depeg, what had happened was disabled of staking, which ultimately resulted in the disablement of new investors being able to vote and the directions of the blockchain.

So when staking was re-enabled, that was a pretty huge development in sort of making the blockchain community-owned, and then what you see with this 1.2% tax is really more of a symbolic gesture.

Look, the community voice is being heard. Yes, it might be sort of this point to rally the community around, and maybe it would have to be revisited at a later time, but really, it's more of a symbolic gesture. If the community wants something, the community can get it.

This is not the only thing on the roadmap. We have many other ideas on how to deflate the coin. One is this 1.2% tax burn, and another is enabling the market swap that was disabled before. And that would reverse the burn through the minting process that ultimately inflated the coin in the first place, and we can revert to deflating the coin.

Q2: It looks like Luna Classic is only supported by its community that the new Luna is the main target of its original founders. So do you think the community is enough for Luna Classic to keep growing?

Vegas: Anyone that starts a project on crypto knows that the most difficult to have is a community that supports your project. That's why we see so much spam on Twitter because it's very hard to have a proper community that supports a project.

We have the hardest thing to do, and we have a community. But we don't only have that. We have the in-changes that seem to support the communities. The validators, they were the ones maintaining this old project and surviving for half a month before the POS was activated again, and we are getting back some majority. Some new and old projects were already working on the chain and are coming back, and some new ones as well. So yes, to be fair, the community is the most important thing to have on our side.

Zaradar: I just like to point out that the community is the most important thing. The validators are always financially driven to go wherever they are.

That means the only differentiator is the development team, and what happened when Terra crashed was that a lot of investors, such as myself, who have been working with IT for 20+ years, gave up everything to fix this mess that TFL stepped away from. So I would argue that we have a better development team than TFL does. From a pure investment perspective, our offering is much better than the tube upgrade Terra Team would be doing in that we have better feature set. But then we have a bigger community looking at it. We have deepened creative teams, and we have a far better development team at the end of the day.

Q3: I’m curious about your roadmap for the LUNC burning process. Can you give us more details about the burning process?

Zaradar: The roadmap is that the burn tax will trigger, which will start the burning on-chain, and this also supports the burning that will start reducing supply. Around Christmas, we are aiming to release some Christmas present we call the E23, which will include limited renewablement. We can get people to start using the swap market again, like KuCoin adds pass and so on. This will lastly significantly increase the burn. Once that is delivered then, we will assume that the burn will pick up early and go at a constant rate. Then we will start working on E24, which will upgrade our chain to provide Terra C, so we can get all the DApps back, and we get new DApps on the platform and start building value. We can then tie into USTC and thus further increase the burn. Looking at it, I think in three to four years, it will probably make quite a significant dent in a month long.

Marventus: I see maybe there is a common tendency between question 1 and question 3. Question1 is asking what Luna Classic is gonna do to counter all the negative effects of the burn tax, and then the third question is what is our roadmap regarding the burn process. What I would like to point out is that it's not up to Terra Rebels to decide this, right? This is also something Ed tried to convey earlier, and it's about the community and what they decide. It's totally up to them. If tomorrow there is a change in consensus regarding the benefits of the burn tax, the community can submit a proposal, and the burn tax can be turned off. It's not gonna be a decision that is gonna be made by Terra Rebels. I think that is a pretty important point to make.

Q4: What will be the next move of Terra Luna Classic for the short and long term?

Edward: I think in the short term, what we have lined up, is this parameter puzzle. It actually looks like the voting is gonna end in about an hour, which means it will go active in the next EPAK of this system, which is approximately at the end of September 20th or early September 21st. What we plan to do is to monitor the help of the network very closely during this on-chain burn, and hopefully, we can get some of the central exchanges onboard with the burn initiative. And then what we are planning to do is to move forward as Tobias was talking about E23, and in this case, we are gonna look very deeply at the swap between LUNC and UST and how to potentially repeg UST to 1. And if we can do that and we can reverse the burn through the swap mechanism, that will greatly increase the burn.

In addition, we have a lot of interest from outside developers looking to chip in now, as they do realize that we are much more decentralized than what it was before the depeg. What's great about that is the community can rally around different issues that they believe are important, and one of the issues that have been identified is the reopening of IBCs, so we have a group of developers outside of Terra Rebels contributing to the initiative. I think that's just a great example of how anyone in the community or ecosystem can come in now and propose changes. And if they have development power, that would be even better.

Zaradar: After the release of E23, we have seen a lot of new devs step up and a lot of people from around the community wanting to help out, which is super great.

Definitely, we want to keep some eyes on that and Do Kwan’s Team, I and Ed will help in designing various editions for the market maker algorithm, which will allow us to eventually get back to doing the dropping we did before without the crashing market, and then we gonna update to the new Cosmos SDK and Cosmos algorithm, which will provide us the capacity to reopen the IBC chains and once that is done, we will start looking at refurbishing the reward system to centralized validators in geographical locations that have lower representations so that we can get true decentralization of the network. And once that is done, we’re going to look at the second layer of HIOT docs, so we can basically link USTC and LUNC into IME devices as layers for each network. That's the 2-year roadmap as it looks right now on the desk with the background.

And obviously, if we go along, we will have to propose to the community and go forward with some of the ideas the community might like. Then we will go with them and some of them might not. And new ideas might come in, so we also have to reserve the flexibility in terms of being able to change our direction if someone consents against us in one way or the other.

Q5: What is your view on the future of Terra Luna Classic?

Alicia: I think that Terra classic has been putting up a valiant fight against the bear market and has seen impressive gains in the last week. There I noticed that the communities were determined to keep them alive. Holders are staunch believers now, and the broader crypto market embraced them even more.

Once Terra Classic has the 1.2% burning mechanism deployed on more centralized and decentralized exchanges like KuCoin. I speculate that we will slowly see the rise of the Terra Classic once again. And I’m looking forward to Terra classic becoming the Top 10 crypto again in the future.

Q6: Many exchanges support the LUNC’s 1.2% burn initiative, but this only applies to on-chain transactions, and the main trading on the exchange does not include burns. Can the community decide to increase the percentage of burning, for example, to 5%?

Vegas: 5% is really too high, even 1.2%. Everyone knows that it will make the chain a little more expensive to work. Everyone understands 1.2% was a community think on this and was achieved not by one person but by many. Some people want more, and some want less. The idea here is to implement this 1.2% and see how it goes. In the next day or next week, we can try to understand if it's too high or if it's too low or if it has to be completely done from scratch. In reality, yet this is the tax that is going to be implemented on-chain, but it can be implemented as well on off-chain like the 3568 proposal was asked to do. We haven't changed those that are supporting off-chain already spot trading, and I hope that more will come as well and support this view. We’re here for everyone.

Zaradar: Basically the tax is covered through two different parameters, one is the tax policy, and the other one is the tax itself. So at any given time, the community could decide to pass a vote to change these parameters that would change the nature of how the tax works.

Alicia: I guess everyone is interested in how centralized exchanges will support LUNC’s burn. As the People's Exchange, we always respect the community's decisions. Since the tax is applied on-chain, while KuCoin spot trading is operated off-chain, it would definitely be tax-free on KuCoin.

To clarify, LUNC deposits from users’ deposit addresses into KuCoin hot wallets will be consolidated and subject to the 1.2% tax burn fee by Terra Classic network once the burn tax is live.

Q7: According to the news, “South Korea seeks to arrest Terraform Labs Founder Do Kwon”, are there any strategies to assure investors that LUNC will still be okay even if Do Kwon gets arrested?

Zaradar: So one of the things I try to tease the community about why we try to fix the chain is that a very important aspect of Proof of Stakes is something called client diversity. Meaning that you have multiple different clients who are basically running the chain at the same time. Our goal has been from day one to separate from TFL to produce our own client, and we are fully capable of doing that now. Because the chain is controlled by the client that used it, we had regard proposed to pass with the big numbers that basically allow validators to expect all the great things from Terra Rebels. So in general, we’re independent of TFL.

Edward: I think one thing to note is that the blockchain is completely independent of any one entity. It is a blockchain by validators, I call them the guardians. They need to sign on what code goes in, and if 66% of them agree that this code is safe to run, and then it would be implemented on the blockchain. Any entity right now cannot have much influence on the running of the blockchain itself, it is safe even if TFL shuts down. We do have some tooling using TFL resources right now, but we are working towards becoming more independent.

Q8: Could you talk about the relationship between KuCoin and Terra Classic?

Alicia: KuCoin was one of the first exchanges to support Terra Classic upgrade, the top three trading volumes in Terra classic, and always had a good relationship with Terra Classic project developers and the community.

At the same time, Terra Classic is also one of the most concerning projects of KuCoin in 2022. On September 7, 2022, KuCoin announced support of the Terra Classic network upgrade.

Meanwhile, we set up an event to give away 1 million dollars to reward Terra Classic depositors and traders! We also launched campaigns like "What's your price prediction for #LUNC at the end of 2022"on the official Twitter, and got thousands of comments and likes.

Today is my first time as a guest to represent KuCoin and join an AMA with the project.

It also proves that KuCoin attaches great importance to the future development of Terra Classic, all due to the excellent community and strong consensus of Terra Classic.

Notice: KuCoin does not provide financial advice. Please do your own risk assessment when deciding how to invest in cryptocurrency and blockchain technology.

KuCoin Post AMA Activity- Terra Classic (LUNC)

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