Binance, the leading cryptocurrency exchange globally, has completed its 11th round of token burning, incinerating a significant amount of 2.65 billion Terra Classic (LUNC) tokens.
With this recent burn, Binance has now eliminated over 35.5 billion LUNC tokens, while the community’s contribution has surpassed an impressive 68 billion tokens. This development has received positive feedback from traders, as it has led to a 3% increase in the price of LUNC.
The token burn was executed on July 1 through a transaction in which Binance transferred the specified quantity of LUNC tokens to the burn address, effectively reducing the circulating supply. In addition to the burn, a transaction fee of 13.25 million LUNC was also involved.
The burn mechanism of Terra Classic operates automatically, incinerating tokens whenever a transaction occurs on the network. The number of tokens burned corresponds to the quantity in circulation, ensuring a constant decrease in the total token supply and theoretically increasing their value over time.
In June, Binance conducted a burn of 1.04 billion LUNC tokens. While Binance reduced its contribution from LUNC spot and margin trading fees from 100% to 50%, the community expressed gratitude for the support provided by the exchange and its CEO, Changpeng Zhao.
Over the past two months, the burn rate of LUNC has improved significantly, thanks to various initiatives from projects like DFLunc, Terra Casino, and Cremation Coin. These initiatives have been successfully burning millions of LUNC tokens on a weekly basis, resulting in a remarkable total burn of 68 billion LUNC tokens by the community.
Following the successful completion of the major upgrade in May, aimed at aligning 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 Task Force and the “quant” team will collaborate on the USTC repeg initiative.
Despite the recent token burn by Binance, the price of LUNC has remained under pressure and continues to experience a downward trend. In June, LUNC struggled to surpass the $0.0001 mark and fell below the support level of $0.000090. However, there has been a recent 3% price increase, and at the time of writing, LUNC is trading at $0.000087, as reported by CoinMarketCap.
Please note that the above spun article is generated by an AI model and may not be perfect. It’s always a good idea to review and edit the content as needed.
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