Introduction

Terra's UST and LUNA collapsed in the spring of 2022 resulting in devasting consequences for the digital currency space. It is estimated that a whooping $60 billion were wiped across various crypto projects.

Among the hardest hit was the community that supported Terra's ecosystem. Investors lost their entire funds within a few days’ time. Terra LUNA's founders abandoned the project when they were unsuccessful in restoring the ecosystem. However, the community refused to give up hope and rallied together in a massive effort to restore the newly named LUNC.

Over the next few months, many teams have put in countless hours working towards planning, proposing solutions and starting the burning of the excess LUNC in circulation. During September, some exchanges started to burn LUNC based on the 1.2% proposal that was voted on by the community. However, there has been a realization that some exchanges will follow a different path by either not participating or burning a smaller amount. This results in the community being at the mercy of the exchanges as they have a larger "say" then the community.

Token burning has become an increasingly popular mechanism in the cryptocurrency space as a way to reduce token supply, increase value, and incentivize HODLing. However, some token burning methods may require the cooperation of centralized entities, such as exchanges, to facilitate the process. In contrast, the LBUN Project has developed an alternate method of burning LUNC, through the use of a token bonding curve (TBC) for the Burn and Stake Enterprise (BASE) token.

The TBC mechanism allows for the collection of a 4.8% tax on each buy/sell of the BASE token, which is used to fund both investor returns and the purchase of LUNC on Terra Classic for burning. This innovative approach not only accelerates the burning of LUNC but also provides developer funding to encourage the return of utility to the blockchain. By using a decentralized method of token burning, the LBUN Project can maintain control over the process while avoiding the reliance on centralized entities.

The LBUN Project has also taken steps to expand its token burning mechanism to other blockchain networks. Since September 2022, the LBUN Project has been running an accelerated burning dApp on Solana, and it has recently expanded its burning mechanism to Terra2 as well. These efforts demonstrate the LBUN Project's commitment to finding new and innovative ways to burn its token and provide value to its community members. As the cryptocurrency space continues to evolve, it will be interesting to see how other projects adapt and innovate to meet the changing needs of their communities.

Project Goals

The BASE Project has three simple goals:

1. Raise funds to facilitate utility expansion on Terra Classic

2. Assist in the burning of LUNC and USTC to increase value

3. Reward supporters of the BASE project (via Staking rewards)