Every time a transaction is made on the network, the Terra Classic burn mechanism immediately burns tokens.The largest cryptocurrency exchange in the world, Binance, has completed its 11th burn round by burning 2.65 billion Terra Classic (LUNC) tokens.
Over 35.5 billion LUNC tokens have been burnt by Binance in total, while over 68 billion have been burned by the community. The burn received a favorable response from investors, as seen by a 3% price increase for LUNC.Based on a transaction carried out on July 1, Binance sent 2.65 billion LUNC tokens to the burn address, lowering the total supply in circulation. A transaction fee of 13.25 million LUNC was also charged for the transaction.
Every time a network transaction takes place, the Terra Classic burn mechanism immediately burns tokens. The quantity of burned tokens is proportional to the quantity in circulation. As a result, the total supply of tokens is guaranteed to be steadily declining, theoretically raising their value over time.
According to Coingape, Binance burned 1.04 billion LUNC tokens in June. The community expressed appreciation for the assistance given by Binance and its CEO, Changpeng Zhao, despite the fact that the cryptocurrency exchange lowered its contribution from LUNC spot and margin trading fees from 100% to 50%.
Due to activities from companies like DFLunc, Terra Casino, and Cremation Coin, which burn millions of LUNC tokens per week, the LUNC burn rate has increased over the previous two months. The community has so successfully burnt 68 billion LUNC tokens.
The community has been concentrating on reducing the number of LUNC and TerraClassicUSD (USTC) tokens since the successful completion of its biggest update in May, which attempts to link the chain with Terra 2.0 and other Cosmos chains. The Joint L1 Task Force and the “quant” team will also work together on the USTC repeg endeavor.
LUN struggled to cross the $0.0001 threshold in June and fell below the $0.000090 support level. The LUNC price is still under pressure and continues to decline despite Binance’s burn. The price of LUNC has increased 3% over the past day, according to CoinMarketCap, and it is currently trading at $0.000087.