Prism protocol looks set to relaunch on Terra Classic.
In a tweet on Sunday, Prism protocol indicated that it might be interested in a return to the Terra Classic network after the community implements the 1.2% tax burn proposal on on-chain LUNA Classic (LUNC) transactions.
“Who would like to see @prism_protocol working again on Terra Classic after the burn changes?” Prism wrote in an attempt to gauge user interest.
— PRISM (@prism_protocol) September 11, 2022
It bears mentioning that Prism was one of the Terra network’s most popular decentralized finance (DeFi) protocols. The derivatives protocol allowed users to manage risk in a more capital-efficient manner, offering liquid yield tokens on staked LUNA tokens. At its height, before the Terra ecosystem collapsed, Prism had $800 million in Total Value Locked (TVL), $70 million in liquidity, and $3 billion in annualized trade volume.
Notably, Prism’s tweet on Sunday was met with mixed responses. While some users expressed excitement as it is good news for the Terra Classic network, others disclosed that they preferred the protocol focusing its efforts on Terra 2.0.
It is worth noting that LUNC has seen renewed demand in recent weeks that has caused the price to surge and allowed it to find its way into the top 30 cryptocurrencies by market cap from 206. The renewed buzz comes as the LUNC community works to curb the excess LUNC supply through burn initiatives to increase the asset value. Its 1.2% tax burn proposal is the latest in this effort, and it has already received the support of several top exchanges, including Binance.
While popular Terra whistleblower FatMan believes that the current LUNC price rally is unsustainable due to a lack of utility, the return of decentralized apps (dApps) and DeFi protocols could change all of that. Notably, one of LUNC DAO CEOs, Max Callisto, has created a proposal to re-enable the Inter Blockchain Communication (IBC) protocol that will allow interactions with other Cosmos chains and unlock liquidity that users can channel to dApps. It bears mentioning that IBC was disabled on Terra Classic during the Terra ecosystem collapse to protect liquidity pools from impermanent losses.
Voting on the 1.2% tax burn started last Tuesday. LUNC Burn, an unofficial channel that monitors LUNC burn activities, says the community will implement the parameter change at a block height of 9475200, noting that it is just nine days away.
On-chain 1.2% burn tax start blockheight:
— LUNC Burn (@LunaBurn_13) September 12, 2022
LUNC is trading at the $0.0004043 price point, down 11.97% in the last 24 hours but up 54.9% in the last seven days.
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