Binance, the world’s largest cryptocurrency exchange, conducted its 11th burn round. The aim was to reduce the circulating supply of Terra Classic (LUNC) tokens. A staggering 2.65 billion LUNC tokens were destroyed in this round.
This latest burn brings the total number of tickets burned by Binance to over 35.5 billion. The community contributed an impressive 68 billion tokens. The burn has been well received by traders, with LUNC witnessing a 3% price boost.
The Terra Classic network forms the basis of Binance’s burn process, wherein tokens are destroyed with each transaction. This method assures that the overall quantity of LUNC tokens decreases over time, raising their theoretical worth.
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
The number of tickets burnt is proportionate to the total circulation, resulting in an automatic procedure. Binance moved 2.65 billion LUNC tokens to the burn address in a transaction on July 1, lowering the circulating supply. The deal included a transaction charge of 13.25 million LUNC.
Binance burned 1.04 billion LUNC tokens in June, according to Coingape. Although Binance cut its contribution from LUNC spot and margin trading fees from 100% to 50%, the community thanked the crypto exchange and its CEO, Changpeng Zhao.
The LUNC burn rate has dramatically improved in recent months due to joint work from projects like DFLunc, Terra Casino, and Cremation Coin. These campaigns have successfully burnt millions of LUNC tokens weekly, contributing to the community’s total burn of 68 billion tokens.
Focus On Decreasing LUNC & USTC Token Supply
After completing its major update in May, which aimed to synchronize the chain with Terra 2.0 and other Cosmos networks, the community focused on lowering the number of LUNC and TerraClassicUSD (USTC) tokens. Furthermore, the Joint L1 Task Force and the “quant” team will work together on the USTC repeg program.
Despite Binance’s ongoing burn attempts, the LUNC price has remained under pressure and has been unable to break over the $0.0001 barrier. The token’s value has dropped below the $0.000090 support level.
Nonetheless, a recent favorable development has occurred. CoinMarketCap reports that LUNC has witnessed a 3% surge in Price over the last 24 hours and is currently trading at $0.000087.
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As Binance continues to burn LUNC tokens, the supply of LUNC decreases. This continual process and active community engagement may influence LUNC’s long-term worth. Traders and investors will watch these changes intently in the coming weeks to see how they affect the LUNC ecosystem.