Every time a network transaction takes place, the Terra Classic burn mechanism immediately burns tokens.
In its eleventh 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 was also charged for the transaction.
Every time a transaction is made on the network, the Terra Classic burn mechanism immediately burns tokens. Token burning is proportional to the total quantity of tokens in use. By ensuring that there is a continual decrease in the overall supply of tokens, their value should theoretically rise over 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.
The community is now concentrating on reducing the quantity of LUNC and TerraClassicUSD (USTC) tokens after the successful completion of its greatest update in May, which intends to match the chain with Terra 2.0 and other Cosmos chains. The “quant” team and the Joint L1 Task Force will also work together on the USTC repeg endeavor.
LUN 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.
The price of LUNC has increased 3% over the past day, according to CoinMarketCap, and it is currently trading at $0.000087.