Just ask Terra, the community charged with maintaining the LUNA utility token protocol and terraUSD stablecoin developed by Terraform Labs.
On Tuesday, the community voted to burn just shy of 89 million LUNA tokens (roughly $4.5 billion). After the proposal put forward by Terra co-founder Do Kwon passed, the token’s price shot up from $50 to past $54, scraping close to its all-time high of $54.77. Then it got caught up in a mini market meltdown, as nearly the entire crypto market turned red. In a few hours, the price had dropped 14%. LUNA, which has a market cap of $23.5 billion, has since leveled off to around $48.
1/ The on-chain votes for proposals 133 and 134 to burn the 88.675 million Pre-Col-5 $LUNA in the Community Pool (~$4.5 billion), swapping for $UST using the on-chain swap, and reducing the oracle_rewards_pool distribution window from 3 to 2 years have now passed!
— Terra (UST) License.