Binance, the world’s largest cryptocurrency exchange, has conducted its 11th LUNC burn, resulting in the destruction of a staggering 2.65 billion Terra Classic (LUNC) tokens. This move is part of Binance’s ongoing efforts to maintain the stability and sustainability of the LUNC ecosystem.
The Terra Classic burn mechanism is an automatic feature that destroys a portion of LUNC tokens each time there is a transaction on the network. This mechanism is designed to reduce the total supply of LUNC tokens, which in turn increases their scarcity and value.
Binance transferred 2.65 billion LUNC tokens to the burn address, reducing the circulating supply, and the transaction also involved a transaction fee of 13.25 million LUNC. The number of tokens burned is relative to the number in circulation, ensuring that the total supply of tokens is continually decreasing, potentially increasing their value over time.
The LUNC burn mechanism has received widespread praise from the cryptocurrency community for its ability to maintain the stability and sustainability of the Terra Classic ecosystem. Binance has been conducting LUNC burns regularly since the launch of the Terra Classic blockchain in 2021, with each burn calculated based on the total trading volume on the Binance platform.
Despite Binance’s burn, the LUNC price remains under pressure, continuing its downward movement. However, the LUNC price has jumped 3% in the last 24 hours, trading at $0.000087 at the time of writing, which is a positive sign for traders.
The community has successfully burned a total of 68 billion LUNC tokens, thanks to initiatives from projects like DFLunc, Terra Casino, and Cremation Coin, which burn millions of LUNC tokens weekly. The community’s current focus is on decreasing the supply of LUNC and TerraClassicUSD (USTC) tokens, and the Joint L1 Task Force and “quant” team will collaborate on the USTC repeg initiative.
Overall, Binance’s 11th LUNC burn represents a significant milestone in the ongoing development and growth of the Terra Classic blockchain. As the platform continues to gain popularity and adoption, it is likely that we will see further LUNC burns and other initiatives aimed at maintaining the long-term success of the network.
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