The LUNC Constitution: A Government of Value

Proposals
1

Proposal: Burn as Resistance – Scarcity Through Governance and Circulation

Abstract

This proposal reframes the burn mechanism not as an arbitrary tax or destruction of value, but as a necessary outcome of governance and circulation. The act of lending, contracting, and societal function naturally forces scarcity of LUNC. Governance should therefore resist unnecessary burns, focusing instead on structured mechanisms (loans, contracts, taxation) that gradually reduce supply while increasing utility. Over time, this ensures LUNC consolidates into ~10 billion wallets — one per human — or fractionally, into salaries and micro-contracts.

Motivation

  • Avoid Arbitrary Burns: Burning for spectacle or hype reduces collective utility. Governance must resist such pressures.

  • Enforce Scarcity Through Use: When banks loan LUNC, when wages are paid, when contracts are signed — a portion is burned by necessity. This ties scarcity to real-world utility.

  • Fair Global Distribution: Over decades, this process ensures LUNC consolidates into human-scale distribution (~10 billion wallets). This fairness builds legitimacy as a world currency.

Specification

  1. Loans & Lending

    • Validators and banks issue loans.

    • Interest is paid, and a portion is burned as the price of circulation.

  2. Contracts & Salaries

    • All societal contracts (employment, trade, services) must include burn provisions.

    • If full salaries are impractical, fractions of LUNC are used — maintaining fairness and accessibility.

  3. Governance Resistance

    • Governance must actively oppose arbitrary burns that erode supply without purpose.

    • Burns must always be contractual, tied to services, or outcomes of circulation.

  4. Global Wallet Distribution

    • The natural endpoint of this system is ~10 billion wallets holding LUNC directly or fractionally.

    • Scarcity is thus aligned with humanity itself — one token per human (symbolically), infinitely divisible for fairness.

Transaction Speed Regulation (Cap Per Block)

To reinforce fairness in circulation, this proposal reintroduces the principle of limiting transaction speed by tying per-block activity to daily volume:

Capitalization Per Block (USD) = 24h Trading Volume (USD) / Blocks per Day

  • Dynamic Scaling: The cap adjusts daily, rising in high-activity markets and tightening in low-activity periods.

  • Fair Distribution: No account can exceed this cap within a single block. Larger orders fragment automatically into multiple blocks.

  • Scarcity by Design: By slowing the churn of trades, this mechanism prevents whales from overwhelming circulation while still allowing natural liquidity to flow.

  • Governance Alignment: Unlike hype burns, this cap ensures deflationary scarcity emerges as a structural feature of transaction flow.**

    Rationale**

  • Deflationary by Necessity: Society itself enforces burns through contracts and loans. No artificial rates or quotas are required.

  • Fairness through Resistance: By resisting arbitrary burns, governance ensures scarcity emerges only where it serves utility.

  • Human-Scale Currency: Aligning supply to ~10 billion wallets guarantees fairness and legitimacy as a global standard.

  • Natural Value Growth: Scarcity tied to contracts creates persistent upward pressure on value, without destabilizing shocks.

    This transaction speed regulation complements the burn-resistance model by ensuring that value is preserved not only through contracts and loans, but also through the tempo of circulation itself.

Risks & Considerations

  • Liquidity Shrinkage: If burns are too aggressive, circulation may slow.

  • Centralization Risk: Whales and institutions will still dominate early contracts. Governance must guide fairness.

  • Adoption Challenge: For global legitimacy, society must embrace fractional salaries and micro-contracts.

Closing Declaration

The burn mechanism is not a spectacle — it is a duty. Governance must resist arbitrary destruction while ensuring that contracts, loans, and societal functions naturally enforce scarcity.

Through this resistance, Terra Classic becomes a human-scale currency, consolidating into ~10 billion wallets or fractions thereof, where value is preserved and fairness is enforced by governance itself.

Why We Must Resist the Aggressive Burn Hype Model

The Terra Classic community has at times been swept up in the narrative of burning tokens as fast as possible — destroying supply in the hope that value will rise overnight. While this idea is appealing on the surface, it is ultimately short-sighted, destructive, and dangerous to the long-term health of LUNC.

Here’s why:

  1. Liquidity Collapse

    • Aggressive burns rip liquidity out of the system before utility can replace it.

    • Without liquidity, adoption stalls — merchants, banks, and institutions cannot use LUNC for trade.

  2. Speculation Over Substance

    • The “burn hype” narrative attracts only speculators, not builders.

    • True adoption requires businesses, contracts, and services — not one-time supply shocks.

  3. Governance Compromise

    • If hype dictates our path, governance loses legitimacy.

    • The community risks being seen as reckless, undermining trust from institutions and potential adopters.

  4. Deflation by Force vs. Deflation by Function

    • Forced burns are artificial and unsustainable.

    • Contractual, service-based burns (loans, wages, taxation) tie scarcity to real-world value. This is sustainable, fair, and legitimate.

The Resistance Model is Superior

  • Deflation by Necessity: Every contract, loan, and transaction naturally reduces supply. No arbitrary burn quotas required.

  • Preservation of Utility: Circulation remains healthy, allowing adoption to spread.

  • Institutional Legitimacy: Banks, corporations, and governments can integrate contractual burns — but they will never adopt a hype-driven destruction model.

  • Fair Human Alignment: Scarcity converges naturally on ~10 billion wallets, aligning with humanity itself.

Our Stand

We declare that LUNC’s future must not be built on hype burns. The aggressive burn model is a trap — one that weakens governance, destroys liquidity, and alienates serious adoption.

Instead, we embrace the Burn as Resistance model:

  • Burns only where society functions demand them.

  • Governance that resists spectacle in favor of principle.

  • A currency that grows in value because it is used, not because it is destroyed.

✦ LUNC will not be sacrificed to hype. It will be built into the foundation of global fairness. ✦

✦ LUNC: Scarcity by Society, Fairness by Governance. ✦