Everyone has a public chain! The rise of Avalanche, reasons behind it, Terra's LUNA Columbus upgrade in September, and BSC also considering burning?

Looking back at the 30-day performance, the public chain Avalanche AVAX took the lead with a 340% increase, followed by the Korean public chain Terra LUNA. Upon closer inspection, it can be observed that apart from AR and AUDIO, all others are public chain projects.

Avalanche Rising Consolidation

The recent news surrounding the Avalanche protocol AVAX has brought significant bullish help:

• A $180 million DeFi incentive program, with SushiSwap also joining the initiative
• Establishing a cross-chain bridge with Ethereum
• Over $300 million locked assets on two decentralized exchanges AMM DEX Pangolin and over $500 million on BENQI

In addition, The Block's research director Larry Cermak offered his own observations:

• Three Arrows Capital, a16z, Polychain buying discounted locked AVAX at $14
• Twitter influencers Hsaka and Su Zhu leveraging their influence
• The default smart contract chain of Avalanche, Contract Chain c-chain, operates smoothly
• Its market cap is relatively small with significant room for growth
• Many promising projects are set to launch on Avalanche
• Memes

1. 3AC, a16z, and Polychain bought discounted locked AVAX at $14
2. Massive ecosystem fund announced ($180M)
3. Hsaka's and Su Zhu's coordinated influence
4. The bridge to c-chain is really damn smooth
5. Low mcap coins that people aped
6. Cool projects in the pipeline
6. Memes

— Larry Cermak 🫡 (@lawmaster) August 25, 2021

TerraLUNA September Columbus Upgrade, Beneficial for Deflation?

What about Terra LUNA, the second-largest gainer that month? In addition to the integration of Terra with Solana's cross-chain asset platform Wormhole V2 in the September Columbus upgrade, the coinage tax reform within the upgrade may have a more significant impact on prices.

Columbus-5 is touted as Terra's most significant upgrade to date, with the most price-relevant content being the "full destruction of coinage tax."

The impact of this measure can be explained within the Terra ecosystem. Terra's native stablecoin, TerraUSD UST, is an algorithmic stablecoin that does not require collateral and stabilizes its value through arbitrage. Whenever UST is minted, LUNA is burned, creating deflationary value for LUNA, known as seigniorage from coinage tax.

Currently, a portion of the coinage tax goes into the community fund pool as oracle rewards. After the implementation of Columbus-5, all coinage tax will be directly destroyed, seen as contributing to further deflation of LUNA.

BSC Community Wishes: We Want Burning Too, CZ: Be Careful What You Wish For

With Ethereum's EIP-1559 introducing fee burning, the community's expectations for inflation reduction and price appreciation are increasing; Terra and Avalanche also have burning mechanisms. This prompted PancakeSwap, the leading AMM on BSC, to voice to Binance founder Changpeng Zhao:

"We want to see a built-in mechanism for burning transaction fees on BSC. This is good for BNB and beneficial for the entire BSC ecosystem."

In response, Binance founder Changpeng Zhao replied with a smile, "Be careful what you wish for."

Careful what you wish for. 😉 #BNB https://t.co/NVuMm0vHzP

— CZ 🔶 Binance (@cz_binance) August 24, 2021

Despite Binance repeatedly denying that BSC belongs to Binance, given its influence, there may be a chance to see burning mechanisms on BSC.