Relationship Between On-Chain Token Burning and Transaction Volume: The Case of #LUNC
**1. Introduction**
This proposal aims to investigate the relationship between on-chain token burning and transaction volume in the case of the LUNC cryptocurrency. On-chain token burning is a mechanism that involves permanently removing a targeted amount of tokens from circulation by executing specific on-chain transactions. This study aims to determine the mathematical relationship between the daily on-chain token burning amount and the transaction volume, as well as analyze the economic implications of this relationship on the LUNC ecosystem.
**2. Research Methodology**
2.1 Data Collection:
- Gathering up-to-date on-chain data from the LUNC blockchain or relevant blockchain explorers.
- Extracting transaction data related to on-chain token burning events.
- Validating the data by cross-referencing with the LUNC project and community.
2.2 Mathematical Modeling:
- At the initial stage, the total supply of LUNC is determined as 5.6 trillion tokens (A_0), and the target supply is set at 10 billion tokens (A_h).
- Calculation of the difference in total supply: ΔA = A_0 - A_h = 5.6 trillion - 10 billion = 5.599 trillion LUNC.
- The duration to reach the target supply is assumed to be 200 days (T = 200 days).
- Calculation of the daily on-chain token burning amount: R = ΔA / T = 5.599 trillion LUNC / 200 days ≈ 27.995 billion LUNC.
- Assuming a burning rate of 0.5% (r = 0.005).
- Calculation of the expected daily transaction volume: V = R / r = 27.995 billion LUNC / 0.005 ≈ 5.599 trillion LUNC.
2.3 Data Analysis:
- Analysis of the relationship between the daily on-chain token burning amount and the transaction volume based on the derived mathematical model.
- Evaluation of the relationship using statistical methods such as correlation analysis and trend analysis.
- Interpretation of the results and determination of the economic implications on the LUNC ecosystem.
**3. Recommendation and Added Value**
- This study aims to investigate the mathematical relationship between on-chain token burning and transaction volume in the case of the LUNC cryptocurrency.
- The obtained results demonstrate a relationship between the daily on-chain token burning amount and the transaction volume.
- The analysis results can provide valuable insights for the development and design of economic models for the LUNC ecosystem and similar cryptocurrencies.
- This study can contribute to the cryptocurrency community by providing a comprehensive perspective on the economic effects of on-chain token burning mechanisms.
**4. Work Plan**
- Data collection: 2 weeks
- Mathematical modeling and calculations: 2 weeks
- Data analysis and interpretation of results: 3 weeks
- Report writing and presentation preparation: 2 weeks
**5. References**
- Official statements and reports from the LUNC project
- On-chain data from the LUNC blockchain or relevant blockchain explorers
- Academic sources on cryptocurrency economics and on-chain token burning mechanisms
