The deflation process of LUNA Classic (LUNC) is continuing at an astonishing rate. According to the latest data, the total supply of LUNC has already decreased by 41.63 billion coins, and this number is still on the rise.

This persistent deflation is mainly attributed to its unique 0.5% transaction tax mechanism. Whenever there are price fluctuations in the market, large investors (commonly known as "whales") tend to engage in large-scale fund transfers. For instance, transferring 1 billion LUNC would incur a fee of 5 million LUNC. Most of these fees will be permanently destroyed, directly leading to the daily deflation of LUNC.

The core value of LUNC is built on this continuous deflation. Investors generally believe that once the bull market arrives, the amount of LUNC destroyed is expected to increase tenfold. Throughout the bull market cycle, tens of trillions of tokens may be destroyed.

This deflationary mechanism gives LUNC a unique economic significance. As the number of tokens continues to decrease, the relative value of each LUNC may rise. However, investors should also be aware that the cryptocurrency market is highly volatile and uncertain, and any investment decision should be based on a thorough understanding of the risks.

Although the deflationary mechanism of LUNC is impressive, its long-term development requires support from more factors, such as technological innovation, expansion of the ecosystem, and broader market recognition. Keeping a close eye on the deflationary process of LUNC is undoubtedly valuable, but it is also important to maintain vigilance and a rational attitude towards the entire cryptocurrency market.