Binance burns 2,65 billion LUNC tokens worth $230 500

What’s new? Crypto exchange Binance withdrew 2,65 billion Terra Classic (LUNC) tokens from circulation during the 11th round of burning. A fee of 13,25 million LUNC was also paid for the transaction. The total number of coins destroyed by the platform now exceeds 35,5 billion and the number burned by the community is 68 billion. As of July 3, 13:40 UTC, the asset is trading at $0,000087, having added 1,09% in 24 hours.

Transaction details

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? LUNC’s burning mechanism automatically removes tokens from circulation when a transaction occurs on the network. The number of coins burned is correlated with the number of coins in circulation. This ensures that the total supply of LUNC is constantly decreasing, which hypothetically increases the value of the asset over time.

In June, Binance burned 1,04 billion LUNC. In addition, the exchange reduced its contribution from spot and margin trading fees on the asset from 100% to 50%.

The LUNC burn rate has improved over the past two months thanks to initiatives by DFLunc, Terra Casino, and Cremation Coin projects, which are taking tokens out of circulation on a weekly basis. As a result, the community has burned 68 billion LUNC.

After the successful May upgrade to bring the network in line with Terra 2.0 and other Cosmos networks, the community is focused on reducing the supply of LUNC and TerraClassicUSD (USTC) stablecoins. In addition, the Joint L1 Task Force and the Quant team will collaborate to restore the USTC stablecoin’s peg to the US dollar.

Terra Classic is the original network created by Terraform Labs (TFL). It continues to exist as an independent blockchain. In turn, Terra 2.0 is a fork created after the project collapsed in May 2022. The native token LUNC and the algorithmic stablecoin USTC belong to Terra Classic, with LUNA and UST assets circulating on the new network.

Earlier, the engineering team unveiled a plan to revive Terra Classic at a cost of $116 000. According to them, LUNC “has limitless upside potential.”