In its 11th burning round, Binance, the largest cryptocurrency exchange globally, has burned 2.65 billion Terra Classic (LUNC) tokens. This brings the total number of LUNC tokens burned by Binance to over 35.5 billion, with the community contributing m more than 68 billion tokens to the burn. Traders responded positively to the burn, leading to a 3% increase in the price of LUNC.
On July 1, Binance executed a transaction where 2.65 billion LUNC tokens were transferred to the burn address, effectively reducing the circulating supply. The transaction also included transaction fees amounting to 13.25 million LUNC. The Terra Classic burn mechanism automatically destroys tokens with each transaction, with the number of tokens burned being proportional to the circulating supply. This ensures a continuous decrease in the total token supply, assuming their value appreciates over time.
In June, Binance burned 1.04 billion LUNC tokens. Despite reducing the contribution of LUNC spot and margin trading fees from 100% to 50%, Binance received appreciation from the community for their support. The increased burn rate of LUNC tokens over the past two mon ths can be attributed to initiatives by projects such as DFLunc, Terra Casino, and Cremation Coin, which have been burning millions of LUNC tokens on a weekly basis. The community has successfully burned a total of 68 billion LUNC tokens.
Following the completion of a major upgrade in May 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. Additionally, the joint L1 working group and the "quantified " team will collaborate on the USTC reegeg initiative. Despite the burn conducted by Binance, the price of LUNC has remained under pressure, showing a continued downward trend. Currently, the price of LUNC has increased by 3% in the past 24 hours, trading at $0.000087.
