Binance Completes its 11th Coin Burn, Eliminating 2.65 Billion LUNC Tokens

Binance, the leading global cryptocurrency exchange, has successfully conducted its 11th token burn, resulting in the destruction of 2.65 billion Terra Classic (LUNC) tokens.

With this latest burn, Binance has now eliminated a total of more than 35.5 billion LUNC tokens, contributing to a community burn exceeding 68 billion tokens. The announcement of the burn has garnered positive reactions from traders, leading to a 3% increase in the price of LUNC.

The token burn process involved a transaction executed on July 1, where Binance transferred 2.65 billion LUNC tokens to the designated burn address. This action effectively reduces the circulating supply of LUNC tokens. Notably, the transaction also included a transaction fee of 13.25 million LUNC.

The burn mechanism of Terra Classic automatically destroys tokens whenever a transaction takes place on the network. The amount of tokens burned is proportional to the number of tokens in circulation. This mechanism ensures a constant decrease in the total token supply, potentially driving up their value over time.

In June, Binance conducted a burn of 1.04 billion LUNC tokens. While Binance decreased its contribution from LUNC spot and margin trading fees from 100% to 50%, the community expressed appreciation for the continued support provided by the exchange and its CEO, Changpeng Zhao.

Recent initiatives from projects like DFLunc, Terra Casino, and Cremation Coin have significantly contributed to the burn rate of LUNC tokens over the past two months. These projects have been consistently burning millions of LUNC tokens on a weekly basis, leading to the impressive burn of 68 billion tokens by the community.

Following the successful completion of a 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. The Joint L1 Task Force and the “quant” team will collaborate on the USTC repeg initiative.

Despite Binance’s burn efforts, the price of LUNC has faced downward pressure. In June, LUNC struggled to surpass the $0.0001 mark and dipped below the support level of $0.000090. However, at the time of writing, the price of LUNC has experienced a 3% increase, with the token trading at $0.000087, according to CoinMarketCap.

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