In its 11th burn round, Binance, the biggest cryptocurrency exchange in the world, burnt 2.65 billion Terra Classic (LUNC) tokens. Binance has already destroyed more than 35.5 billion LUNC tokens in total, and the community has burned more than 68 billion. The burn has been well received by investors as seen by the 3% price increase for LUNC. The circulating quantity of LUNC tokens was decreased by 2.65 billion as a result of a transaction that Binance carried out on July 1. 13.25 million LUNC in transaction fees were also charged for the transaction.
Every time a transaction takes place on the network, the Terra Classic burn mechanism instantly destroys tokens. The amount of tokens burned is proportional to the total number in use. Because of the ongoing reduction in the number of tokens in circulation, their value should theoretically rise with time.
According to Coingape, in June, Binance burned 1.04 billion LUNC coins. Although the community expressed gratitude for the support given by Binance and its CEO, Changpeng Zhao, the cryptocurrency exchange cut its contribution from LUNC spot and margin trading fees from 100% to 50%. Due to initiatives from companies like DFLunc, Terra Casino, and Cremation Coin, which burn millions of LUNC tokens per week, the LUNC burn rate has increased over the last two months. As a result, 68 billion LUNC tokens have been successfully burned by the community.
LUNC had trouble breaking through the $0.0001 barrier in June and fell below the $0.000090 support level. Despite Binance’s burn, the price of LUNC is still under pressure and continues to decline. According to CoinMarketCap, the price of LUNC has increased by 3% over the past day.