Tue. Sep 26th, 2023

Binance, the world’s largest cryptocurrency exchange by traded volume, has announced the completion of its first burning of LUNC tokens days after promising to help reduce the supply of tokens. The burn saw $1.8 million worth of LUNC collected from spot and margin trading destroyed, according to a tweet from Binance CEO, Changpeng Zhao (CZ). “Burn tokens” means sending a cryptocurrency to a specific address whose keys are unknown. Those tokens are considered destroyed as no one can access them. In particular, this activity reduces the supply of tokens in circulation, which is theoretically good for the price. At the end of September, Binance declared that it would launch the burning mechanism “in response to the LUNC community proposal on burning trading fees”, maintaining a good trading experience for users. At the time, CZ clarified that trading fees would only be charged on the spot and margin trading pairs LUNC/BUSD and LUNC/USDT.

“Commissions will be converted to LUNC and then sent to the burn address. The burning is paid at our expense, not that of the users“. CZ said. According to him, this will ensure fairness for all users and ensure that the LUNC trading experience and liquidity remain the same. However, according to the LUNC Burner website, only 0.2% of the token’s total supply has been burned since its launch. Consequently, Binance has only managed to burn around 0.08 percent of the LUNA supply, figures that Some they think they are disappointing and unlikely to have a positive impact on price. However, buyers continue to flock to LUNC, whose price has risen more than 300% in September thanks to the activation of staking in August. LUNC remains one of the most profitable tokens for staking today, with an annualized reward of 37.8%. To date, 8.5% of the tokens in circulation have been staked according to Staking Rewards data. In the past week, the token’s traded volume on Binance also surpassed that of Ethereum in the last week to come in second place after Bitcoin. Luna Classic (LUNC) is the native token of the Terra Classic Blockchain, which exploded in May after the project’s algorithmic stablecoin lost its peg to the dollar. With the price of the token plummeting to almost zero, the founder of the project, the Korean Do Kwon, and some members of the community initiated a recovery plan that included the introduction of a burn mechanism to reduce the bloated supply of the token. Despite falling in early September, the value of LUNC is up more than 74% in the last week and is still up more than 60% in the last month. However, the price of LUNC remains a long way from its all-time high of $100, and increasing scrutiny of Terra’s ecosystems weighs on prospects for a full recovery. Recently, the token was trading at $0.0002998 after falling 6.99% in the last 24 hours.

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