Binance, the world’s largest cryptocurrency exchange by trading volume, recently completed the 7th LUNC burn, removing approximately 8.9 billion LUNC tokens from circulation. This event finally marked the official re-release of Binance’s LUNC burn mechanism to the Terra Classic community. Here are the details…
When will Binance hold the next LUNC burn?
Binance recently burned 8.9 billion LUNC tokens, which accounts for 50 percent of all spot and margin trading fees for the token over the past three months. The amount burned was calculated from wages accrued between November 30, 2022 and February 27, 2023. Binance converted the collected fees in USDT, BUSD and BNB prior to the burn to LUNC. The burn contribution was sent to a 0.2 percent tax-exempt address brought in by the LUNC community in October 2022.
The Terra community is now looking forward to the next major burn after the success of the first Binance LUNC burn, and judging by Binance’s official announcement, the next burn could happen as early as April 2nd. This was first brought to light by the leading Terra Classic validator ClassyCrypto.
What’s the latest for LUNC?
Binance adopted LUNC transaction fee burns in September 2022, after previously facing backlash from the LUNC community for a 1.2 percent tax cut proposal. It then burned 5.5 billion LUNC. The community then revised the tax burn rate backed by Binance and KuCoin to 0.2 percent. Sending some of the LUNC transaction fees to a burn address helps reduce the circulating supply of the token. The LUNC community initially advocated burning the coin to control its supply. Their main goal was to restore the $1 price of sister stablecoin Terra Classic.
LUNC, formerly LUNA, was part of an arbitrage function that kept the stablecoin TerraUSD, now Terra Classic, at $1. Investors fell on the pennies after pressing rising volumes when major TerraUSD transactions over the weekend of May 7 – May 9, 2022, slashed the stablecoin from $1. Its value has since increased by almost 17,000 percent to $0.00017080.
The recent LUNC burn by Binance has not only reduced supply, but also caused a modest increase in the token price. According to market data, LUNC posted gains of over 4 percent in light of the news, and as such, this trend is expected to continue, with the second burn scheduled for April 2. Currently, the price of LUNC is trading at $0.00014522 according to Cryptokoin.com data.
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