Binance, a leading cryptocurrency exchange, has successfully concluded the twelfth round of Terra Classic (LUNC) token burning, a strategic process designed to reduce token supply and enhance its scarcity.
This token burning mechanism aims to contribute to the overall health and sustainability of the Terra Classic ecosystem.
During this round of token burning, Binance eliminated a substantial amount of LUNC tokens from circulation. Specifically, the exchange burned a total of 1.41 billion LUNC tokens.
These tokens were equivalent to half of the LUNC trading commission revenues generated on the platform. In terms of market value, this token burn represents approximately $112,000, based on current market prices.
The cryptocurrency exchange plans to unveil the details of the thirteenth round of Terra Classic (LUNC) token burning in an upcoming blog post.
This announcement is scheduled to be released tomorrow, providing insights into the exchange’s ongoing commitment to maintaining the ecosystem’s vitality.
The journey of Terra Classic (LUNC) traces back to a significant event that occurred in May 2022. During this period,
Terra’s USD-pegged stablecoin, UST, experienced a de-pegging event that caused it to drop below the $1 mark. This event triggered a large-scale sell-off of LUNA tokens, Terra’s native cryptocurrency.
The aftermath of this de-pegging event led to a substantial decrease in the value of LUNA tokens, with prices plummeting to nearly zero from levels exceeding $100.
This sudden downturn resulted in the erosion of billions of dollars in market capitalization and instability within the Terra blockchain.
In response to these challenges, the Terra team made a strategic decision to reinvigorate the project under the same name, Terra Classic, albeit with a new genesis block and an innovative token offering.
Consequently, the native token of the restructured blockchain was designated as LUNC, marking a new chapter for the Terra Classic ecosystem.