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The success of a 2% burn tax on the EverGrow token has got LUNC investors excited.
EverGrow launched in September last year, and to date has burned more than 53% of its initial supply as it hits its first birthday.
The success creates new excitement for LUNC investors as the implementation of a 1.2% burn tax is due for launch on 21st September.
If the LUNC (Terra Classic) burn tax could cut supply in half, it could double the price providing trading volume remains the same. But to be effective it needs to find a way to be implemented on off-chain exchanges like Binance.
Here's how the EverGrow tax has been so successful.
A burn tax of just 2% has sent more than 53% of the initial EverGrow supply to the burn address, bscscan data shows.
EverGrow launched in September last year with a fixed initial supply of 1,000,000,000,000,000 tokens.
The burn address now contains 531.6 trillion of those $EGC tokens.
While the price of EverGrow has fallen since January as all cryptocurrencies during the bear market, it means that during a next bull market the price of EverGrow could easily double its previous all-time high.
A higher EverGrow price will not affect the burn rate, however, as the tax will continue collecting 2% as before.
This is promising for LUNC investors, who see the tax as a means of recovering losses incurred following the collapse of Terra Luna. The Terra Classic supply is currently at over 6.5 billion – prior to the collapse there were only 350 million Luna tokens in circulation.
Sending 3 billion LUNC tokens to a burn address would therefore be a huge achievement, and bring the project halfway to recovering investors' losses.
One of the main issues facing LUNC investors is where the ecosystem is headed.
There is still no clarity on who the developers are, who the validators are, and what the roadmap is.
EverGrow again provides clues as to how an ecosystem could grow that favours even more LUNC burns.
EverGrow just launched a new ecosystem token – Lucro – which is intended for high volume use cases within the EverGrow system. There's just a 1% tax on it, of which 0.8% is destined for $EGC buyback and burn.
But because the token hit a trading volume close to $10 million on launch day, Lucro is already generating more funds for EverGrow buyback and burn than the $EGC burn tax itself.
This is an innovative method to both boost coin burns and build out an ecosystem.
As Luna Classic finds a place for itself post-collapse, many are looking to EverGrow for inspiration.
FIND OUT MORE
EverGrow website:
Lucro token website: https://lucrotoken.com/
EverGrow Twitter: https://twitter.com/evergrowcoinEGC
Lucro Twitter: https://twitter.com/lucrotoken
Buy EverGrow: https://evergrowegc.com/buy-now/
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