In a groundbreaking move, the decentralized finance protocol DFLunc has recently burned almost 2.5 billion of its native Terra Classic (LUNC) tokens. This strategic shift is part of the project’s collaboration with Edward Kim’s highly anticipated AI application chain, “Block Entropy”.
DFLunc has altered its LUNC burn mechanism to facilitate users in obtaining the Block Entropy testnet tokens. Rather than directly sending LUNC from user wallets to the burn address, the protocol now transfers tokens via a different address. As part of this process, the word “entropy” is entered into the memo field of transactions.
Over a span of two days, the protocol sent 58 million LUNC to the burn address on May 25, followed by 44 million LUNC on May 26. The project aims to burn billions of Terra Classic tokens as part of its strategy to deflate the circulating supply.
Users who wish to acquire Block Entropy TestNet tokens must send LUNC to the burn address accompanied by an “entropy” message. The transaction hash must then be entered into the TestNet faucet. The amount of testnet tokens received will correspond directly with the quantity of LUNC burned. It’s important to note that these tokens have no intrinsic value and can solely be used for machine learning activities.
Edward Kim, the core developer behind Block Entropy, plans to work closely with the Joint L1 Task Force (L1TF) to integrate Interchain Accounts (ICA) into Terra Classic following successful testing on LUNC L1 TestNet and passing a governance proposal. This step will be undertaken only after the CosmWasm v1.1.0 parity upgrade on June 14.
Post the parity upgrade, L1TF is contemplating a collaboration with the USTC repeg team to create a USTC test environment. This move is aimed at building the necessary infrastructure to successfully repeg USTC to $1. These developments mark a significant transition in the Terra Classic project’s approach and signal its commitment to emerging AI-driven blockchain innovations.