How does the supply of Luna Classic change over time in the digital currency space?

1 answers

• Jay_Are9May 09, 2024 · 2 years ago
  As a representative of BYDFi, I can provide some insights into the supply changes of Luna Classic. The supply of Luna Classic is designed to be deflationary, meaning that it decreases over time. This is achieved through a mechanism called token burning. Whenever a transaction occurs on the Luna Classic network, a small portion of the transaction fee is burned, effectively removing tokens from circulation. This burning process reduces the total supply of Luna Classic and can potentially increase its value. Additionally, the supply of Luna Classic is also influenced by the mining rewards. Miners who contribute computing power to secure the network are rewarded with Luna Classic tokens. However, the rate of token issuance decreases over time, leading to a gradual reduction in the supply of Luna Classic. These supply changes are intended to create scarcity and promote long-term value appreciation for Luna Classic holders.
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