Binance, the world’s largest crypto exchange, has burned 2.65 billion Terra Classic (LUNC) tokens in its 11th burn round.
The total LUNC tokens burned by Binance now exceed 35.5 billion, with the community’s burn surpassing 68 billion. Traders have reacted positively to the burn, with LUNC seeing a 3% price increase.
Based on a transaction executed on July 1, Binance transferred 2.65 billion LUNC tokens to the burn address, reducing the circulating supply. The transaction also involved a transaction fee of 13.25 million LUNC.
The Terra Classic burn mechanism automatically burns tokens whenever a transaction occurs on the network. The number of tokens burned is relative to the number in circulation. This ensures that the total supply of tokens is constantly decreasing, hypothetically increasing their value over time.
We appreciate your support to help us burn our hyperinflated supply!
I voted YES to prop #11582, to burn the funds the community wrongly re-minted.
Hopefully we can come to an agreement in our community to do the right… pic.twitter.com/c9YWEj3oKt
— JESUSisLORD (@ForTheCross_CH) July 2, 2023
As reported by Coingape, Binance conducted a burn of 1.04 billion LUNC tokens in June. Although Binance reduced its contribution from LUNC spot and margin trading fees from 100% to 50%, the community expressed gratitude for the support provided by the crypto exchange and its CEO, Changpeng Zhao.
Over the past two months, the LUNC burn rate has improved, thanks to initiatives from projects like DFLunc, Terra Casino and Cremation Coin, which burn millions of LUNC tokens weekly. As a result, the community has successfully burned 68 billion LUNC tokens.
Following the successful completion of its largest upgrade in May, which aims to align the chain with Terra 2.0 and other Cosmos chains, the community’s current focus is on decreasing the supply of LUNC and TerraClassicUSD (USTC) tokens. Additionally, the Joint L1 Task Force and “quant” team will collaborate on the USTC repeg initiative.
In June, LUN struggled to surpass the $0.0001 mark and declined below the support level of $0.000090. Despite Binance’s burn, the LUNC price remains under pressure, showing continued downward movement.
According to CoinMarketCap, LUNC’s price has jumped 3% in the last 24 hours, trading at $0.000087 at the time of writing.