How will Terra Luna work in 2023? – 3 things to know

Thousands of investors are eyeing up a Luna Classic investment in 2023.

Here's the bullish case: Luna Classic adds an extra $2 billion to its market cap, shoots back into the crypto top 20, and makes everyone an ROI of at least 300%.

But is that really going to happen? 

Here are three things to know about how Terra Luna will work in 2023.

1. LUNC burn tax will fail to make an impact

Luna Classic pumped over 500% in August-September after Binance announced it would implement a 1.2% burn tax on LUNC trading.

But since then, the LUNC community voted to slash the burn tax down to 0.2%. The burn rate from -51% from 18.8 billion burned in October to 9.2 billion burned in November. At this rate, there's no way Luna Classic can reduce its supply to just 10 billion as the original burn tax intended.

The Luna Classic supply is currently 5.9 trillion. By the end of 2023, it's expected to be 5.87 trillion.

The burn tax reversal has drawn comparisons between Luna Classic and EverGrow. (Hit altcoin EverGrow has a burn tax and is on track for $1 in just a few years – despite being worth only $0.0000001 today.)

If you thought burning would revive LUNC, then you're better off buying EverGrow: https://evergrowegc.com/ 

2. New wallet/ Station

Terraform Labs is launching a new wallet in December, called just 'Station' rather than TerraStation. It's a cross chain wallet for Terra and Feather/Alliance chains.

This has caused a stir among LUNC traders. Terra Rebels – the unofficial lead development team on Terra Classic – put a vote out that would pay them $150k of community funds to make their Rebel Station fully independent from Terraform Labs.

Here's the reason why Terra Rebels says it's necessary:

"This community pool spend proposal from Terra Rebels is concerned with ensuring that the community retains access to their wallets through Rebel Station after TFL replace Terra Station with a new wallet application, Interchain Station, with which Terra Classic is not compatible without extensive and costly L1 development work."

There's a worry that LUNC or USTC holders will not be able to access their tokens on the new Station app. Despite this worry, the Terra Rebels vote is not passing. 

Some believe that the new Inter Station from TFL will be Classic compatible. Others believe that Terra Rebels are trying to grab people's money without reason. 

3. USTC repeg attempt 

This is the big one: can Terra Classic repeg USTC to LUNC?

Terra Rebels have a roadmap published on their website which suggests that TR will 'solidify the plan around an Algorithmic Fungible Token (AFT)' before the end of 2022. Obviously this means there isn't a plan yet, but Terra Rebels plan to 'repeg the AFT' in Q1 of 2023. They plan to then 'establish new capital controls' and 'partially collateralise the AFT'.

How will they do this?

We don't know. 

Here's what it says in the whitepaper: "The [repeg] is beyond the scope of emergency measures that need to be taken immediately and will be addressed more thoroughly in a different document."

We're still waiting for that document. So if there's one thing to know about the LUNC roadmap in 2023, it's that nobody knows what it is yet.