LUNAX: The Algorithmic Floorcoin for Terra Classic 1,012.64% APY

General
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Foreword: Before you dismiss this protocol idea as completely stupid, I got this idea from another project doing the exact same thing on another chain, and its working right now exactly as it was designed to do. Although at the moment it was released some people tried to snipe the launch thinking it was just another meme coin and it got massively overbought so the chart doesn’t look pretty if you include the launch. However if you look at the chart without including the launch it is working perfectly.

How I have changed the concept it tomake the cost to mine much more aggressive and also include sell taxes to help fund the chain.
It is mined via a proof of work mining simulator.

:full_moon: Introducing LUNAX: The Algorithmic Floorcoin for Terra Classic

LUNAX isn’t a stablecoin. It’s a floorcoin — a non-pegged, algorithmically governed asset backed by a rising mint cost and a treasury-supported floor, built entirely around LUNC.

Instead of promising a fixed price, LUNAX builds value by design — using luck-based tunnels, a fixed daily issuance limit, and smart sell taxes that recycle value into floor defense.

:slot_machine: Tunnel Mining: Probabilistic, Risk-Based Minting LUNAX is minted through tunnels — randomized, luck-based minting attempts.

  • Users send LUNC into a tunnel
  • Only 8 tunnel blocks can successfully mint per day
  • Minting success is random, not price-based
  • If the user’s mint fails, their LUNC is captured by the protocol treasury

This system gamifies minting, rewards early participants, and recycles failed capital into long-term value defense.

:hourglass_not_done: Aggressive Cost Curve: +2% Every 3 Days = +1,012.64% APY Tunnel cost increases 2% every 3 days, compounding over time. That’s an annualized increase of:

:chart_increasing: +1,012.64% APY

Mint Cost Examples (for 1,000 LUNAX):

  • Day 0: 100,000 LUNC
  • Day 30: ~119,404 LUNC
  • Day 90: ~171,208 LUNC
  • Day 180: ~293,360 LUNC
  • Day 365: ~1,112,638 LUNC

This extreme cost ramp means:

  • Early participants get the best rates
  • Inflation slows rapidly
  • Late-stage minting is incredibly scarce

:date: Hard Cap: Only 8 Successful Mints Per Day LUNAX is artificially supply-constrained by protocol logic:

  • Just 8 mints per day can succeed, no matter how many users try
  • Tunnel attempts beyond that limit will fail — LUNC is lost to the treasury

This keeps supply predictable, competitive, and tightly limited.

:busts_in_silhouette: Mining Teams: Coordinate to Improve Odds Because tunnel mints are limited and randomized, users may form mining teams to:

  • Share risk and cost
  • Coordinate across time zones
  • Strategically spread tunnel attempts

Mining teams may evolve into DAOs, leaderboards, and social mining layers — creating a game-theoretic economy around access.

:money_with_wings: Sell Tax: Recirculating Value to the Ecosystem LUNAX applies a 6% sell tax to support LUNC and oracle infrastructure:

Portion Use
3% To the LUNC burn or treasury (for supply reduction or defense)
2% To the Oracle Pool (validators & feeds)
1% To LUNC liquidity or ecosystem incentives

All exits support the broader LUNC economy — reinforcing the floor and long-term chain sustainability.

:shield: Protocol Treasury: Reactive Floor Support The treasury receives:

  • Failed tunnel LUNC
  • Future fees or grants

It deploys this LUNC to buy LUNAX on the open market if price approaches the floor — turning failure and friction into floor power.

:balance_scale: What Makes LUNAX Unique

  • :cross_mark: No peg
  • :white_check_mark: Randomized, luck-based minting
  • :white_check_mark: Strict daily issuance cap
  • :white_check_mark: Aggressive cost ramp (+1,012% APY)
  • :white_check_mark: Sell tax supports LUNC and oracle system
  • :white_check_mark: Game-theory and mining teams built-in

LUNAX is more than a coin — it’s an economic experiment in programmable scarcity and market-derived value memory.

:white_cane: Roadmap Highlights

  • :brick: Tunnel explorer & leaderboard
  • :busts_in_silhouette: Mining team coordination tools
  • 🛱 Oracle onboarding & rewards
  • :bar_chart: Treasury dashboard
  • :ballot_box_with_ballot: Community voting on cost curve & tax rates

You can’t print your way to stability. But you can build a floor — and let the market climb.

Welcome to LUNAX. Where risk creates resilience.

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You gonna need some serious on chain randomness oracle for this. Otherwise it is not going to work from a technical perspective. Making such an randomness oracle thing secure and unattackable is probably a project of its own.

Don’t get me wrong: I like your prop. But you need to factor this in: LUNC is not able to generate (pseudo) randomness currently…

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The protocol live right now works on base, and they send data to chainlink (I think) for the verifiable randomness.

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Anyway, I think all it would need is a random number generator which would randomly assign a random tunnel as “the winner”.
Is it not possible for LUNC to have a random number generator built on it?

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I am not posting this to promote it, I am only doing it to show an example of this type of protocol already live and working. To see this type of protocol working already, check out whirl dot fi

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Oh it is possible. While I think about it… I could make a PPJ for that, actually

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I have just found out that this project actually failed because there was no incentive to hold the new token:

The system relied on this logic:

Price > Tunnel Cost → Incentive to Mine → Higher Tunnel Cost → Price Rises More

But that didn’t happen because:

  • People sold instantly when price was up → price collapsed back to cost
  • New users saw no profit → didn’t mint
  • Old holders dumped into hype → punished new minters
  • Tunnel mining became high risk, low reward

:firecracker: Why WHIRL’s Flywheel Failed

:rocket: The plan:

  • People buy WHIRL, pushing up the price
  • Price goes above tunnel cost, so mining becomes profitable
  • More people mine WHIRL, which raises the tunnel cost
  • Higher cost = more backing, less inflation, higher value
  • The cycle repeats = flywheel effect

:collision: What actually happened:

  • People aped in, pumped the price
  • Other holders sold immediately, dropping the price back to tunnel cost
  • So new miners had no profit — just risk
  • No one wanted to mine anymore
  • Tunnel blocks went unfilled, treasury stopped growing
  • Flywheel broke — price couldn’t stay up, minting stopped, demand died

:brain: In one sentence:

Every time someone tried to help the system by buying or mining, someone else cashed out, killing the momentum.

The easiest and most effective way to fix WHIRL’s broken flywheel is:

:white_check_mark: Give Successful Miners a Reason to Hold Instead of Dumping

:key: Simple Fix:

Add vesting rewards or bonuses that only unlock if miners hold their WHIRL.

:wrench: How It Works:

Let’s say a user wins 1,000 WHIRL in a tunnel:

  • They instantly get 700 WHIRL
  • The other 300 is locked for 30 days
  • If they don’t sell, they get the bonus
  • If they sell early, they forfeit the bonus (goes to treasury or miners’ pool)

:light_bulb: Why This Works:

Problem Fix
Everyone sells Now there’s a reason not to
Price crashes Selling slows down — price stabilizes
No reason to mine Miners can now earn more over time
Flywheel never spins Holding creates momentum, not collapse

:white_check_mark: Optional: Add a small sell tax (e.g. 4–6%)

  • Burn some WHIRL
  • Feed a bonus pool or floor treasury
    Now selling helps the system too.

:brain: TL;DR

Give miners extra rewards — but only if they hold.
That’s the simplest fix that flips incentives and gets the flywheel moving again.

Want a short paragraph or message to send to the WHIRL dev with this fix proposal?