Binance, the world’s largest cryptocurrency exchange, has officially reintegrated its LUNC burn mechanism into the Terra Luna Classic community by destroying over 8.85 billion LUNC tokens in its seventh batch of burns. This strategic move significantly reduces LUNC’s circulating supply, reinforcing the ecosystem’s deflationary model.
Key Highlights of Binance’s LUNC Burn
- Total Tokens Burned: 8.85 billion LUNC sent to a dedicated burn address.
- Cumulative Impact: Binance has now burned nearly 29 billion Terra Classic tokens from spot and margin trading fees.
- Burn Frequency Shift: Transitioned from weekly to monthly burns in November 2022 to optimize costs and operational efficiency.
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Why Binance’s Burn Volume Dropped Below 10 Billion
- Proposal 10983: The Terra Luna Classic community voted to allocate 50% (previously 10%) of the 0.2% burn tax to the community pool for development, reducing Binance’s burn contribution.
- Technical Upgrades: The v1.10 network upgrade ensured compliance with Binance’s requirements, including a new burn wallet to prevent re-minting and tax exemptions for internal wallet transfers.
Note: Binance remains the largest LUNC burner, responsible for over 50% of total burns.
Terra Luna Classic’s Burn and Staking Metrics
| Metric | Value |
|---|---|
| Total LUNC Burned | 48.5+ billion |
| Total LUNC Staked | 949.17 billion |
LUNC Price Reaction to Binance’s Burn
- 24-Hour Surge: LUNC price rose 4%, trading at $0.00017.
- Trading Volume: Increased by 100%, signaling heightened trader interest.
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FAQs: Binance’s LUNC Burn Mechanism
Q: Why did Binance pause burns in December 2022?
A: The pause allowed the community to implement Proposal 10983 and technical upgrades before resuming burns in 2023.
Q: How does LUNC’s burn tax work?
A: A 0.2% tax on transactions is split: 50% burned, 50% to the community pool.
Q: What’s next for Terra Luna Classic?
A: Continued burns, staking growth, and ecosystem development aim to stabilize LUNC’s value.
Conclusion
Binance’s latest burn reinforces its commitment to Terra Luna Classic’s sustainability. With 48.5 billion LUNC already burned and staking nearing 1 trillion tokens, the community’s collaborative efforts are setting a precedent for tokenomics innovation.
Data as of February 2023. Prices and metrics are subject to market volatility.