How to Stake LUNC in 2023
Are you looking for a way to earn passive income with cryptocurrency? If so, staking Luna Classic could be the opportunity you’ve been waiting for. Staking tokens has become a popular way to earn passive income while contributing to the running of a blockchain network.
Luna Classic (LUNC) is the original token of the Terra-Luna network, a stablecoin blockchain that uses an algorithm to maintain its price. In this article, we’ll dive deeper into the mechanics of how to stake LUNC as well as explore its potential benefits and risks.
Table of Contents
What is Staking?
Staking is a vital part of the operations of a blockchain network. Users can lock up or “stake” their tokens for a certain period of time to participate in maintaining the network. By doing so, you’re contributing to the security, integrity, and consensus of the blockchain network. And in return, you’ll often receive tokens or other rewards. It’s a way to directly participate in the ecosystem of the network while also earning passive income.
Normally, most users delegate their tokens to a validator when staking. This way, you won’t need an in-depth technical knowledge of how to maintain a blockchain network in order to know how to stake LUNC. The validator will handle the complexities and you’ll receive a portion of the rewards.
Where to Buy LUNC
To buy Luna Classic (LUNC) tokens, you’ll need to use a cryptocurrency exchange or similar platform like CryptoWallet that supports LUNC trading. A cryptocurrency exchange is a platform where you can buy, sell, and trade cryptocurrencies.
It’s important to ensure that the platform you choose is secure and reliable, with a good track record of handling users’ funds and information. Some popular cryptocurrency exchanges that list Luna Classic include Binance, OKX, Kraken, and Gemini.
How to Stake LUNC
Once you’ve bought your LUNC tokens, it’s time to stake them. The easiest way to stake LUNC is on TerraStation. Terra Station is the official application for the Terra Luna ecosystem.
Set Up Terra Station Wallet
To start, you’ll need to create a Terra Station wallet for staking. First download the Terra Station mobile app/web browser extension and follow the instructions given.
On the app, click Wallet and then Connect. You’ll see an option to choose a New Wallet. Click this and compete the setup process. You’ll be given a mnemonic phrase, also known as a seed phrase. Please write this down on paper somewhere safe as you’ll need it to access your account.
Once your wallet is set up, click Connect.
Note: Make sure to choose the Terra Classic network when setting up your wallet.
Transfer your LUNC tokens to Terra Station
Now that your wallet is setup, you can transfer your tokens from the platform you purchased them on to your new Terra Station Wallet. This can be done through the withdrawal option on your chosen platform.
You’ll need the public key of your new LUNC wallet as well as any additional info such as a MEMO if your wallet has one. Otherwise you can click No Memo.
You can input these details into the Withdraw to Wallet section. Once you’ve entered in all the correct details, click withdraw.
Note: It’s essential to enter these details in correctly, otherwise your tokens may be lost.
How to Stake LUNC: Stake your Lunar Classic
Now you have your Terra Station account all setup and your LUNC tokens on the platform. Time to start staking!
You can stake Luna Classic in two different ways; Quick Stake and Manual Stake. Quick Stake is the easiest option, with Manual Stake, you’ll have to choose your validator.
Click Stake and choose which method you want to use.
Quick Stake: Here you can simply choose the amount you want to stake and the platform will automatically choose a validator at random who fits their criteria. Doublecheck the amount and fees, then click Stake.
Manual Stake: For this method you’ll have to choose which validator to delegate your tokens to. You can look through the list of available validators. Some will take a higher or lower percentage of the rewards. Each validator has their voting power and commission rate listed. Clicking into a validator will show you more information about the validator and give you an option to choose that validator.
Once you’ve picked your validator, you can choose how many tokens to lock up in staking. Then simply click Stake. Now sit back and wait for the rewards to come rolling in!
Note: Once you stake your tokens, they’ll be locked for 21 days even if you unstake. It’s important not to stake any tokens you’ll need easy access to.
What are the Risks to Staking LUNC?
So what’s the downside? There is some risk involved in staking Terra Luna Classic. You could potentially lose some of your staked tokens or rewards. You;’ll also need to understand some technical information to stake your tokens safely. You may have to choose some settings for how you stake, although most of the process is handled by the platform you choose. It’s recommended to leave some tokens aside for future transactions with your staked tokens.
There is also a minimum lockup period to be aware of. You can unstake your tokens at any time but your tokens will remain locked up for 21 days after you unstake them. So, it’s important to consider that if you want to have easy access to your tokens.
How to Stake LUNC on Binance
You can also stake LUNC on Binance Earn, however, the return is often lower than using Terra Station. Currently, the APY stands at 0.16%.
With Binance, you can buy your LUNC tokens and stake them through the Binance Earn program by following these steps:
- Setup an account on Binance.
- Buy LUNC tokens using a credit or debit card.
- Head to the Binace Earn page (Finance->Binance Earn).
- Click Locked Staking.
- Search for LUNC.
- Click Stake Now.
- Review the details and if you’re satisfied, tick the agreement box and click Confirm.
LUNC Burn
On Terra Classic, 0.2% of LUNC tokens involved in every transaction are permanently destroyed, or “burned”, in order to reduce the amount of LUNC in circulation. This is aimed at tackling deflation. As more tokens are created the value of the token would theoretically drop. However, by burning tokens used in transactions, the burning acts as a deflationary mechanism.
The LUNC burn tax was previously set at 1.2%, however, this discouraged on-chain activity. The community agreed to a proposal to lower the burn tax as a result.
Luna Classic News
Binance has recently burned 1.6 billion Luna Classic (LUNC) tokens which caused the price of LUNC to spike 3%.
This Terra Luna Classic Binance burn combined with the burning of 33 million LUNC tokens days before, is part of a community-wide initiative to raise the price of LUNC to $1 over a long period time. In total, the community has burned over 52.5 billion LUNC tokens, with Binance being responsible for 58% of the burn.
CryptoWallet.com Staking
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FAQ
Is Wrapped Luna Token a Good Investment?
Wrapped Luna token is a representation of LUNC on the Ethereum blockchain. It’s an ERC-20 token that matches the price of LUNC. It’s difficult to predict the movement of any token, but Wrapped Luna should maintain price with Luna Classic.
Is Luna Classic Dead?
While the network has lost many of its users and the price is well below its previous highs, a small but active community has gathered around the token and it’s ecosystem. These token holders see serious potential in Luna Classic returning to its heydays. The question of will Terra Luna Classic recover is still unanswered.
Where to Buy Luna Classic
You can buy Luna Classic on several popular cryptocurrency exchanges and platforms including Binance, OKX, Gemini, Bitfinex, Crypto.com, and CryptoWallet.
