There are thousands of people playing LUNA on the exchanges right now.
If the burn fee is set to 10% for each transaction made, the current supply will begin to decrease rapidly.
This will start to slowly push the price of LUNA up, which will create fomo and speculation in the market.
Hungry new players will arrive, a snowball will be created that will reduce the circulating supply as drastically as the drop we experienced, down to 1b of supply.
As the supply goes down the flaring rate should go down in proportion.
When the target is met, the rate will return to the origin and the price of LUNA will be stable.
The players will disappear and good and new investors will appear.
The community can be rescued thanks to profiteers and hungry wolves.
Perhaps f they do what you’re proposing it might work and reestablish the reputation and confidence in Luna as token and ecosystem because it’s extremely high risk a new token at this times
There’s a lot sense in this. In fact the 24h trade volume of LUNA/BUSD once hits 14T. So I think this suggestion would help greatly without the need for a buyback even.
This is the only thing that makes sense. Migrating to a new chain will only just start a new race to zero as nothing changes except you punish new people putting capital in.
You need to migrate value by incentivizing new money to rebuild the market-cap of the existing chain, while burning otherwise you’re just going to put the old holders against each other squid game style on who can hit the sell button the fastest.
Trading volume comes from offchain trading on centralized exchanges, so adding the 10% burn fee to each onchain transaction won’t significantly decrease LUNA supply. The 10% fee will only affect arbitrage traders.
However, burning a small portion of normal transaction fees similar to EIP-1559 might help a bit, but mostly as a PR move to show that something is being down to decrease LUNA supply.
Burn rate of 10% will discourage new investors to join Lunatics community. No need to burn. All the Luna Foundation+management has to is dig into their pockets and invest 100Mill, buys LUNA from open markets, and LOCK it for 3-5 years. Supply will reduce Drastically. Investors confidence will be back. New people will join, community will grow. Meanwhile find ways to actually generate revenue.
At LUNA’s current price, the discount on each transaction is only thousandths of a cent.
The rate should be adjusted according to the amount of the supply burned, until reaching the original rate.