Binance Boosts Burned LUNC Total to 37B Tokens, While Terra Community’s Burning Surpasses 71.5B Tokens

By 0xGorki 08/3/23 7:22 AM

In a recent announcement, Binance, one of the world’s leading cryptocurrency exchanges, revealed that they had burned a staggering 1.14 billion Terra Luna Classic (LUNC) tokens in the 12th iteration of the Terra Classic burning mechanism.

The tokens subjected to burning were taken from transaction fees on reserve and spot trading pairs during the month of July 2023. With this latest event, Binance has now burned a total of 37 billion LUNC tokens, while the overall Terra community burning has reached 71.5 billion tokens.

Specifically, according to details about Binance’s burning transactions on August 1st, the platform utilized approximately 7.06 million LUNC transaction fees to send 1.14 billion LUNC to the burn address. This move aligns with the ongoing effort to reduce the circulating supply of tokens.

Binance updated their website for #LunaClassic Burn ~1.4 billion $LUNC burnt worth around $120k 🔥🔥🔥 pic.twitter.com/91FxJ6JuSd

— LUNC NEWS 🚀 (@Chot4a) August 2, 2023

Notably, Binance had previously burned 2.65 billion Terra Luna Classic tokens in the past July. However, the burning rate has significantly increased this past month due to positive sentiment stemming from proposed even-odd upgrades within the same month, including Professor Edward Kim’s Block Entropy AI application chain and the proposed re-anchoring of USTC.

Following this latest burning event, the Terra ecosystem token saw a decline below its key support level as LUNA dropped by 5%, while LUNC and USTC experienced decreases of 2% and 7%, respectively.

These developments occurred amidst the context of Judge Rakoff’s dismissal of Terraform Labs and Do Kwon’s lawsuit against the U.S. Securities and Exchange Commission based on precedents set by Judge Torres’ ruling.

The token burning mechanism is a crucial aspect of the cryptocurrency ecosystem, aimed at maintaining and enhancing the value of tokens by reducing their overall supply. Token burns are typically carried out by sending tokens to an unrecoverable address, effectively removing them from circulation forever.

Terra Luna Classic is a key part of the Terra ecosystem, which is known for its stablecoin protocol that maintains price stability through an algorithmic design. The burning of LUNC tokens demonstrates Binance’s commitment to ensuring a healthy token economy and reinforcing the value proposition for its users.

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