Why Burn LUNA is Trending?

In a reply to a Twitter user, Do Kwon, co-founder of LUNA, sent a wallet address that is supposed to be a burn address. Later, he changed his statement and said that sending it to that burning address had no benefit.

The burn address is terra16jllen5yd68awy6sdsys8jnulq9h3kjf00wzq7.

The Reason Behind Luna Burn

Previously the algorithm was set like that as soon as you burn UST, you get an equivalent value in LUNA. Do Kwon proposed just the reverse. Since LUNA and UST are algorithmically stable, burning LUNA will prop up the value of UST.

The intention was to cap LUNA at a supply of 1 Billion.

Do Kwon Later Changed his Statement

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

Later, he changed his statement saying that sending LUNA to that address will prove to be of no benefit. He added that people who were sent to that address were simply losing tokens. This irked many of his followers who reacted aggressively:

The moment you fail to respect the communities demand is the moment you lost the community. Accept the burning as we all did and let’s start rebuilding #luna from there. No fork because that new project will be as good as dead on the long run. Do I still trust You? Hell NO

— Emma Crypto (@EmmaCryptto) May 23, 2022