Burn mechanisms

The Juris recovery blueprint includes using eligible revenue to fund LUNC burns. Money-market interest settlement currently allocates collected assets to lenders and configured recipients; it does not automatically burn LUNC.

LUNC and JURIS

LUNC is Terra Classic’s native asset. A LUNC burn reduces its supply. JURIS is a separate token, so a JURIS burn does not reduce the amount of LUNC in circulation.

A buyback purchases tokens. Those tokens remain in supply unless a separate burn destroys them. Holding purchased tokens in a treasury is not a burn.

Liquidation Vault shares

The Liquidation Vault burns share tokens when it fulfills a redemption. Those shares represent ownership of vault inventory. Burning them cancels the redeemed ownership while the user receives the corresponding assets.

Partial redemptions burn only the fulfilled portion of the shares. This process does not burn the LUNC or other assets paid to the user. See Liquidation Vault.

Revenue-funded burns

The proposed flywheel links eligible fee revenue to LUNC supply reduction, including potential fees from future stablecoin activity. It is separate from staking distributions and the Shirini Promotion.