Binance Burns 2.65 Billion LUNC Tokens in Its Latest Burn Round
In its 11th burn round, Binance, the largest cryptocurrency exchange globally, has effectively burned 2.65 billion Terra Classic (LUNC) tokens. The total number of LUNC tokens burned by Binance so far exceeds 35.5 billion, while the community burn surpasses 68 billion. This significant event has elicited a positive reaction from traders, leading to a 3% price increase in LUNC.
Transaction Details and Impact on Circulating Supply
Based on a transaction executed on July 1, Binance transferred 2.65 billion LUNC tokens to the burn address. This action has resulted in a decrease in the circulating supply of the tokens. Along with this, the transaction involved a fee of 13.25 million LUNC.
The Unique Terra Classic Burn Mechanism
The Terra Classic network features a unique burn mechanism that automatically destroys tokens with each transaction. The quantity of tokens burned is relative to the circulating number, ensuring a steady decrease in the total supply and, hypothetically, an increase in their value over time.
Previous Burns and Community Reaction
Binance conducted a burn of 1.04 billion LUNC tokens in June, as reported by Coingape. Despite reducing its contribution from LUNC spot and margin trading fees from 100% to 50%, the community applauded the support provided by the crypto exchange and its CEO, Changpeng Zhao.
Improvement in LUNC Burn Rate
Over the past couple of months, the LUNC burn rate has seen significant improvement. Initiatives from projects like DFLunc, Terra Casino, and Cremation Coin have contributed to this increase, resulting in the successful burning of 68 billion LUNC tokens by the community.
Current Community Focus and Future Plans
Following the successful completion of the largest upgrade in May, the community’s focus is now on reducing the supply of LUNC and TerraClassicUSD (USTC) tokens. The Joint L1 Task Force and “quant” team are also set to collaborate on the USTC repeg initiative.
Price Pressure Despite Token Burn
Despite Binance’s recent burn, the LUNC price remains under pressure and has continued its downward trend. As per CoinMarketCap, LUNC’s price has jumped 3% in the last 24 hours and is trading at $0.000087 at the time of writing.