Do Kwon gives out the LUNA burn address but advises 'LUNAtics' not to use it

The recent Terra resurrection proposal published by Do Kwon, the co-founder and CEO of Terraform Labs, drew varied comments, with many questioning the effectiveness of a hard fork in restoring the LUNA and UST tokens' falling prices. Instead, several members of the community suggested that burning LUNA tokens was the most likely strategy to make a comeback.

To save the Terra ecosystem, Kwon proposes hard forking the existing Terra blockchain and releasing a fresh version of the LUNA tokens to investors based on a historical snapshot before the death spiral. Several crypto entrepreneurs, like Changpeng "CZ" Zhao, have stated, however:

"Reducing supply should be done by burning rather than forking at an old date, and abandoning everyone who tried to save the coin."

Kwon went against his original intention and publicly disclosed a burn address for LUNA on May 21 in response to constant requests from the crypto community. Every LUNA token received to this address will be instantly burnt, significantly lowering the LUNA token quantity in circulation.

To clarify, as I’ve noted multiple times i dont think sending tokens to this address to burn tokens is a good idea - nothing happens except that you lose your tokens

Want there to be no confusion whatsoever https://t.co/GrzG9cclAr
— Do Kwon 🌕 (@stablekwon) May 23, 2022

"Nothing occurs except you lose your tokens," Kwon said two days after publishing the LUNA burn address.

The Terra co-founder stated that the burn address was simply provided to users for informational purposes, and recommended against utilizing it:

"I'm happy to supply for educational purposes, but please note that you should not burn tokens unless you know what you're doing - I don't."

However, the news caused even more consternation among investors. As previously reported by Cointelegraph, LUNA's extreme volatility presents a lucrative opportunity for investors looking to recoup their losses while others look for successful deals.

Terra is no longer minting new LUNA tokens, according to Kwon, which is one of the key reasons why investors believe a burning mechanism will enhance the LUNA price due to scarcity.

Investors are encouraged to avoid making hasty financial decisions while the master plan for Terra restoration is still being scrutinized by the public.

Numerous projects sought to relocate to alternative blockchain ecosystems struggling for life as a direct result of Terra's failure. By recently enrolling Tracer, a Web3 fitness and lifestyle app, Near Foundation also contributed.

Near Foundation's (NEAR) Nicky Chalabi told Cointelegraph that projects like Tracer aim to accord with the ecosystem's core ideals, and that:

"Projects must keep an eye on their community and users' interests because, in the end, that's the most valuable asset they have."

"That can truly define your success," Chalabi added, advising Terra projects to migrate only after considering the interests of their users and communities.

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