A significant amount of 222 million LUNC tokens and 1.85 billion USTC were eliminated from the circulating supply by the Luna Foundation Guard. The removal of these tokens caused a surge in prices within the Terra Luna Classic ecosystem. Despite the rapid increase in value, the prices of LUNC and USTC quickly corrected after the initial surge.
Following the removal, there are now 7.1 billion USTC tokens in circulation. It's important to note that the circulating supply does not include tokens that are held in escrow, by the team, or by the foundation. Assets that are locked, not tradable publicly, or assigned to insiders are not considered part of the circulating supply, as per CoinMarketCap.
The decision to remove tokens from circulation was made due to an account that remained inactive for over two years. However, it was later clarified that the removal was not actual withdrawals but rather adjustments. This caused community members to engage in rapid buying of LUNC and USTC, leading to price hikes that were later corrected.
The Terra Luna Classic community aims to reduce the total supply by burning USTC and LUNC tokens held in the LFG wallet. However, the recent removals have been characterized as adjustments rather than permanent deletions from circulating supply.
