- Binance has burned 1.41 billion LUNC tokens, contributing to a cumulative burn of near 37 billion tokens by the exchange itself.
- The broader community has collectively burned over 71.5 billion LUNC tokens.
Binance, the world’s leading cryptocurrency exchange, has incinerated an enormous 1.41 billion Terra Luna Classic (LUNC) tokens in its latest burn event. This burn forms part of the 12th round of the LUNC burn mechanism, underpinning the significance of token burning in cryptocurrency ecosystems.
The Dynamics of the LUNC Token Burn
Token burn events are integral in regulating the circulating supply of a given cryptocurrency. By burning, or essentially eliminating tokens from circulation, the supply diminishes. This action can lead to an increase in the token’s value, assuming demand remains constant or increases.
In this recent event, Binance sent 1.41 billion LUNC tokens to a designated burn address on August 1. This transaction also incurred a fee of 7.06 million LUNC tokens. Consequently, this significantly reduced the circulating supply of LUNC.
This 12th burn batch corresponds to the period from June 30 to July 30, 2023. With this action, Binance has effectively annihilated approximately 37 billion LUNC tokens generated from trading fees on LUNC spot and margin trading pairs.
The month of July witnessed Binance burning a significant 2.65 billion LUNC tokens. This notable increase in the burn rate coincided with positive sentiment around the Terra Luna Classic ecosystem. Factors such as the parity upgrade, the introduction of Professor Edward Kim’s AI app chain Block Entropy, and the USTC repeg plan all contributed to this optimism.
LUNC Community Burning on High Heat
Outside of Binance’s actions, the broader LUNC community has also been actively participating in token burns. The community burn has surpassed a whopping 71.5 billion LUNC tokens, recently crossing the milestone of 70 billion. In addition, 800 million USTC tokens are also earmarked for burning via the Ozone Protocol.
These substantial token burn activities within the LUNC ecosystem may create potential upward price momentum for the Terra Luna Classic tokens. Currently trading at $0.0000796, LUNC’s price could recover above the $0.00009 support level, as predicted by CoinGape Markets.
Notwithstanding these potential prospects, Terra ecosystem tokens have faced a recent slump. LUNA, LUNC, and USTC have dropped 5%, 2%, and 7% respectively, following a denial of Terraform Labs and Do Kwon’s motion to dismiss a US SEC lawsuit. Investors should approach with an awareness of these volatile market dynamics.