In its 11th batch of the Terra Classic (LUNC) burn mechanism, Binance, the world’s largest crypto exchange, has successfully burned 2.65 billion LUNC tokens. This brings the total number of LUNC tokens burned by Binance to over 35.5 billion, while the community’s burn exceeds 68 billion. Traders have responded positively to the burn, resulting in a 3% increase in LUNC price.
The Luna Classic burn mechanism functions by automatically burning tokens with each transaction on the network. The number of tokens burned is proportional to the circulating supply, leading to a gradual decrease in the total token supply over time, thereby increasing their value.
Binance executed a transaction on July 1, transferring 2.65 billion LUNC tokens to the burn address, aimed at reducing the circulating supply of LUNC. The transaction also included a fee of 13.25 million LUNC tokens.
This recent burn follows Binance’s previous burn of 1.04 billion LUNC tokens in June. Although Binance decreased its contribution from LUNC spot and margin trading fees from 100% to 50%, the community remains grateful for the support provided by Binance and its CEO, Changpeng Zhao “CZ.”
Over the past two months, various projects, including DFLunc, TerraCasino, and Cremation Coin, have contributed to the burn rate, regularly eliminating millions of LUNC tokens. As a result of these initiatives, the community has successfully burned a substantial total of 68 billion LUNC tokens.
With the completion of its largest upgrade in the previous month, the community’s current focus is on reducing the supply of both LUNC and USTC tokens in the third quarter. The Joint L1 Task Force and Quant team will collaborate on the USTC repeg initiative.
Despite Binance’s burn efforts, the price of Terra Classic has faced challenges, struggling to surpass the $0.0001 mark and dipping below the support level of $0.000090 in June. The LUNC price continues to experience downward movement.
According to Coinmarketcap, LUNC’s price has recently increased by 3% over the past 24 hours, currently trading at $0.000087. The 24-hour trading volume has decreased during this period.
The community remains engaged in reviving the ecosystem, with initiatives like Terra Allies’ Six Samurai team working towards this goal. Overall, the focus remains on decreasing token supply and implementing upgrades to drive long-term value within the Terra Classic network.