In its 11th round of token burn, Binance, the world’s largest cryptocurrency exchange, has burned a staggering 2.65 billion Terra Classic (LUNC) tokens.
This latest burn brings the total number of LUNC tokens burned by Binance to over 35.5 billion, while the community’s burn has surpassed an impressive 68 billion.
As a result of this development, traders have responded positively, leading to a 3% increase in the price of LUNC.
The burn took place on July 1, when Binance executed a transaction by transferring 2.65 billion LUNC tokens to the burn address, effectively reducing the circulating supply.
Additionally, the transaction incurred a transaction fee of 13.25 million LUNC tokens.
The Terra Classic burn mechanism operates automatically, burning tokens whenever a transaction occurs on the network.
The number of tokens burned is proportionate to the number in circulation, ensuring a constant decrease in the total supply of tokens. This mechanism theoretically increases the value of the tokens over time.
Last month, Binance burned 1.04 billion LUNC tokens, even though the exchange reduced its contribution from LUNC spot and margin trading fees from 100% to 50%.
Despite the reduction, the community expressed gratitude for the ongoing support from Binance and its CEO, Changpeng Zhao.
Over the past couple of months, the burn rate of LUNC tokens has improved significantly, thanks to initiatives from projects like DFLunc, Terra Casino, and Cremation Coin.
These projects have been burning millions of LUNC tokens on a weekly basis, contributing to the community’s successful burn of 68 billion LUNC tokens.
After completing a major upgrade in May, which aimed to align the chain with Terra 2.0 and other Cosmos chains, the community’s current focus is on reducing the supply of LUNC and TerraClassicUSD (USTC) tokens.
Additionally, the Joint L1 Task Force and the “quant” team will collaborate on the USTC repeg initiative.
In terms of price performance, LUNC has faced some challenges.
In June, the token struggled to surpass the $0.0001 mark and even dipped below the support level of $0.000090.
Despite Binance’s burn efforts, the price of LUNC remains under pressure, exhibiting a continued downward trend.
As of now, CoinMarketCap reports a 3% increase in the price of LUNC over the past 24 hours, with the token trading at $0.000087.
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