Binance Destroys 1.04 Billion LUNC Tokens in Latest Burn Event

cryptoglobe.com 02 June 2023 23:17, UTC

Altcoins

Leading cryptocurrency exchange Binance has recently burned a total of 1.04 billion tokens of Terra Classic ($LUNC), effectively making the 10^th burn as part of the $LUNC burn mechanism, which to date has seen a total of nearly 33 billion $LUNC get burned.

This latest burn, covering the period from April 30 to May 30, 2023, also incorporated a transaction fee of 5.22 million $LUNC tokens. To date, Binance has burned close to 33 billion Terra Classic tokens, accumulated as trading fees from $LUNC spot and margin trading pairs.

It’s worth noting that the original Terra ecosystem collapsed last year and later rebranded to Terra Classic, while a new, forked blockchain took the Terra brand with it. When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2% tax burn on all transactions conducted on the network.

The Terra Classic community, has been battling for increased adoption and even created a petition to get listed on cryptocurrency exchange Coinbase.

BREAKING: #Binance    burns 1,044,105,202 $LUNC valued at $88,373 USD.

To date Binance has burned 32,880,731,426 #$LUNC valued at $2,783,025 USD. Thank you CZ and crew for supporting the #LunaClassic community! #Terra #Terraport #$LUNC pic.twitter.com/YWkecaeQ8T
— Terraport Dao (@TerraportDao) June 2, 2023

Interestingly, despite a reduction in the contribution of $LUNC spot and margin trading fees from 100% to 50%, causing a corresponding decrease in Binance’s $LUNC burns, the overall burn rate of the cryptocurrency saw a significant uptick in May as decentralized finance protocol DFLunc burned an additional 2.5 billion tokens.

Among some of the developments on the horizon for $LUNC are amendments to burn tax regulations, the implementation of a 5% minimum commission fee for validators, and collaboration with the USTC repeg team to establish a USTC test environment.

As CryptoGlobe reported, Binance has supported $LUNC’s network upgrades to date, including one that set seigniorage rewards on the network to 0%. Binance has been supporting the network’s token burns, with for example its third batch of burns destroying 2.5 billion tokens, permanently removing them from circulation in a single transaction.

Last month, in an effort to re-peg TerraClassicUSD ($USTC) to the dollar, the $LUNC community mulled over a proposal that involved a mechanism that includes divergence fees on USTC trades that deviate from the peg.