Binance burns $1,86 million LUNC

The exchange will burn the asset every Monday at 00:00 UTC

04.10.2022 - 10:10

736

2 min

What’s new? Binance cryptocurrency exchange conducted the first burning of Terra Classic (LUNC) tokens received as fees for trading the asset, totaling $1,86 million (about 5,5 billion tokens). The initiative was implemented in accordance with the community’s proposal received in September. As of October 4, 09:40 UTC, LUNC is trading at $0,000313, down by 4,56% in 24 hours.

News on the Binance blog

Cryptocurrency burning is the process of removing a certain number of tokens from circulation, after which they become permanently inaccessible. Often burning is carried out in order to increase the rate of an asset or prevent it from inflation. Burning can be done by sending tokens to a wallet without a private key, by conducting a hard fork, using special software, or using algorithms that destroy some of the funds during transactions.

What else is known about the procedure? The exchange burned fees received for spot and margin trading in LUNC/BUSD and LUNC/USDT pairs. Binance’s September 26 announcement reported that the burning would take place every Monday at 00:00 UTC, hence the next one will take place on October 10.

On September 27, LUNC showed a 50% increase. This happened after Binance announced that LUNC received as trading fees would be burned. Previously, such a mechanism to burn assets was implemented only for deposit and withdrawal fees. Now all trading fees will be sent to a special address to burn the asset.

Author: