Binance, the world’s leading cryptocurrency exchange, has completed its 11th burn round, destroying a total of 2.65 billion Terra Classic (LUNC) tokens.
This latest burn brings the cumulative number of LUNC tokens burned by Binance to over 35.5 billion, with the community’s burn reaching an impressive 68 billion. The burn event has received positive feedback from traders, as the price of LUNC experienced a 3% increase.
The burn took place on July 1, when Binance executed a transaction transferring 2.65 billion LUNC tokens to the burn address, effectively reducing the circulating supply. The transaction also 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 proportional to the number in circulation, ensuring a continuous reduction in the total supply. This reduction is expected to contribute to a potential increase in the value of the tokens over time.
In June, Binance conducted another burn event, destroying 1.04 billion LUNC tokens. While Binance reduced its contribution from LUNC spot and margin trading fees from 100% to 50%, the community expressed appreciation for the support provided by the exchange and its CEO, Changpeng Zhao.
The LUNC burn rate has seen improvement in recent months, thanks to initiatives from various projects such as DFLunc, Terra Casino, and Cremation Coin.
These projects have been burning millions of LUNC tokens on a weekly basis, resulting in the successful burn of 68 billion LUNC tokens by the community.
Following a major upgrade in May that 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.
Collaborative efforts between the Joint L1 Task Force and the “quant” team will also be directed toward the USTC repeg initiative.
Despite the recent burn by Binance, the price of LUNC has continued to face downward pressure. In June, LUNC struggled to surpass the $0.0001 mark and dipped below the support level of $0.000090.
However, in the last 24 hours, the price of LUNC has shown a 3% increase, trading at $0.000087 at the time of writing, according to CoinMarketCap.
