Binance has made a giant move for an altcoin whose price is hovering around zero. The announcement that it will burn more than 6 billion tokens triggered a strong rally.
Binance put this altcoin project in motion with the news of token burn
The leading exchange has permanently removed more than 6 billion tokens from circulation in the 6th batch of the Terra Classic (LUNC) burn mechanism. Binance sent 20 billion LUNC tokens to the dead wallet in its most recent token burn event. The exchange is now delisting another 6.39 billion Terra Classic (LUNC) tokens on December 1. Thus, the 30 October – 30 November period of the monthly token burning event was completed.
Binance changed the token burning event, which it initially set on a weekly basis, to burn LUNC on a monthly basis. Therefore, on December 1, it burned some of the LUNC transactions from October 30 to November 29. On the first day of each month, the exchange calculates the LUNC transaction fees to be burned for the previous month. The next on-chain burns and the monthly report are updated the next day.
Amid token burning news, LUNC is rising, will there be a sequel?
Terra Classic (LUNC) price spiked shortly after the Binance news. It has undergone some correction after surging more than 10% in about two hours. LUNC is currently trading at $0.0001685, up 4.5% from the last 24 hours. It is worth noting that the ATH price is still trading 99.9% below $119.18.
After the events around Terra LUNA and UST in May, Binance announced that it would burn some of the commission it received from LUNC transactions. The exchange thus wants to shrink the supply of numerous LUNA printed to save the UST price. In this way, the price of LUNC, which is traded at zero-bit prices, finds an opportunity to recover.
Binance burned more than 5.5 billion LUNC in the first batch and 1.26 billion in the fifth batch on October 31. Meanwhile, the crypto community has accepted the proposal, which effectively reduces gas burns from 1.2% to 0.2%. Terra Classic has seen an increase in the number of validators after volunteer developer group Terra Rebels announced their offer for new validators and the Terra Classic network increased utility. While price is far from recovering at the moment, the Terra team will have to work over the years to make up for it. As Kriptokoin.com, we have conveyed what happened in the Terra ecosystem in May in this article.
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