In its latest move to reduce the supply of Terra Classic (LUNC) tokens, Binance, the world’s leading cryptocurrency exchange, has conducted its 11th burn event, eliminating a staggering 2.65 billion LUNC tokens.
With this burn, the total LUNC tokens burned by Binance have now surpassed 35.5 billion, and when combined with the community’s burn efforts, the overall figure has exceeded an impressive 68 billion tokens. The market response to this initiative has been positive, with LUNC witnessing a 3% increase in price.
The recent burn was carried out on July 1, where Binance executed a transaction transferring 2.65 billion LUNC tokens to the burn address, effectively reducing the circulating supply. As part of the transaction, a transaction fee of 13.25 million LUNC was also incurred.
The Terra Classic burn mechanism, unique to its network, automatically burns tokens whenever transactions take place. The number of tokens burned is directly proportional to the number of tokens in circulation.
This ingenious approach ensures a constant decrease in the total token supply, which theoretically leads to an increase in their value over time.
As reported by Coingape, Binance previously conducted a burn of 1.04 billion LUNC tokens in June. Though Binance reduced its contribution from LUNC spot and margin trading fees from 100% to 50%, the community remains appreciative of the support provided by the cryptocurrency exchange and its CEO, Changpeng Zhao.
In recent months, the LUNC burn rate has seen improvements, thanks to the efforts of projects like DFLunc, Terra Casino, and Cremation Coin, which have been consistently burning millions of LUNC tokens weekly.
This collective endeavor has led to the successful burning of 68 billion LUNC tokens by the community.
Following the major upgrade completed in May, which aimed to align the chain with Terra 2.0 and other Cosmos chains, the community’s current focus lies in further decreasing the supply of LUNC and TerraClassicUSD (USTC) tokens. Additionally, the Joint L1 Task Force and the “quant” team are working together on the USTC repeg initiative.
Despite Binance’s continuous efforts to burn LUNC tokens, the price of LUNC has faced challenges in surpassing the $0.0001 mark and has dipped below the support level of $0.000090.
Nevertheless, the recent 3% increase in the LUNC price, as reported by CoinMarketCap, suggests some positive momentum, with LUNC trading at $0.000087 at the time of writing.