Fastest method to reduce total supply is via a method of CONSOLIDATION 1 LUNC for every 10 held. After a 1 for 10 held consolidation . (9 gets burned instantly)
LUNC can achieve an instant 90% supply reduction with an INSTANT BURN that would affect all ON Chain and OFF Chain LUNC held.
6.9 Trillion LUNC supply would become 690 Billion LUNC in an instant - not years in the future.
Reducing the supply with an instant burn by default does not change the MC (Market Cap)
The LUNC value before the consolidation will be automatically revalued and by default will hold a new value 10 times greater.
Example : Lunc 0.0003 becomes 0.0030
IMPORTANT TO NOTE 2 THINGS.
- The MC Market Cap is still the same by default at the time of Consolidation.
- Does not account for any MC rerating that will likely occur with such a massive supply reduction, so will likely have substantial upside as the LUNC MC Rerates.
LUNC Total Supply needs to be greatly reduced.
LUNC Burn rate needs to be accelerated and after the CZ Binance latest AMA certainly showed a reluctance to implement the 1.2% Burn Tax on all transactions OFF CHAIN especially in their CEX.
In essence for every 10 LUNC you hold at a set time of implementation of a 1 for 10 Consolidation Burn, would see the existing holding go from 10 LUNC to a new holding of 1 LUNC. (90% BURN)
1 Million existing Lunc becomes 100 Thousand LUNC
10 Million existing Lunc becomes 1 Million LUNC
100 Million existing Lunc becomes 10 Million LUNC
1 Billion LUNC existing becomes 100 Million LUNC
The 90% is removed via instant burning.
NO ENTITIES TO FINANCE ANYTHING and NO PAYMENTS TO ANYONE and NO BUY BACKS APPLICABLE.
After the point of consolidation LUNC holders simply receive revalued LUNC.
Even though you will have less coins, they will have 10X more value as the MC (Market Cap) remains the same. Its not the MC that is getting burned here.
HOW THE MC (Market Cap) WORKS
Example Before Consolidation :
LUNC MC equaling $2,070,000,000
TOTAL Supply = 6.9 Trillion LUNC
LUNC Value = $0.0003
Example AFTER Consolidation :
LUNC MC equaling $2,070,000,000
TOTAL Supply = 690 Billion LUNC
LUNC Value = $0.0030
Market Cap remains the same but the LUNC value is revalued.
Market Cap will likely RERATE significantly just prior and after the instant 90% supply burn is implemented.
P1) Burns 90% of supply instantly.
P2) Revalues LUNC and the LUNC MC will RERATE even Faster
P3) Can be reimplemented later on again and again to reduce supply to the magic 10 Billion number.
(see other thread in General section I made)
P4) The 1.2% Burn Tax can still remain for deposits and withdrawals.
P5) The CEXs could be encouraged to still apply an OFF CHAIN burn tax even if it is at a reduced percentage to not stifle trading volumes. (perhaps 0.3% to 0.5% is less noticeable and more achieved with frequency of CEX trading) Binance CZ latest AMA is now much clearer in their reluctance to implement.
P6) Less supply achieved instantly instead of many years into the future.
P7) Captures the participation of all CEXs, especially a reluctant Binance.
C1) Just dont see any CONs right now, even more so as was very disappointed with Binance CZ after hearing what was said in the latest AMA.
TECHNICAL QUESTION SUGGESTIONS
TQS1) If each and every LUNC / Wallet Holder / Exchange Account etc can be tagged by a date or some other identifier as prior to a consolidated burn point and they come online or into circulation by trading, the Wallet Holder is automatically resized as per the consolidation ratio of 1 for every 10 held.
Not a code write and unsure of the limitations and restraints of code and chain functionality and how it may be done forcibly on the CEXs.
UD1) Unknown technical issues or complexities to implement with the non compliant CEXs
UD2) Can the devs actually do this ?
UD3) Is there some underlying issue that prevents this ?
UD4) Unknown quantity and level of resources that may be required.
UD5) What financial and technical resources if any would be required by the devs to implement ?
(Devs and more experienced people need to provide comment and feedback)
SOMETHING NEEDS TO BE DONE TO REDUCE THE TOTAL SUPPLY AND WITH NON COMPLIANT CEXs IT WILL TAKE A WILD AMOUNT OF YEARS TO REDUCE SUPPLY.
Looking for constructive dialogue not poorly expressed views without foundation or substance.
I have seen these consolidations work successfully for public listed companies in my 25 plus years of investing and IMO this is most definitely what LUNC should be doing.
Did start a thread in the general discussion and now moving it to the Governance & Proposals section thanks to Binance CZ