Terra Classic Implements Automatic Token Burn Mechanism for Continuous Supply Reduction
In its 11th burn round, Binance, the largest cryptocurrency exchange globally, has successfully burned 2.65 billion Terra Classic (LUNC) tokens. This burning process aims to reduce the token supply and maintain the ecosystem’s balance and sustainability.
With the recent burn of 2.65 billion Terra Classic (LUNC) tokens by Binance, the total tokens burned by the exchange have surpassed 35.5 billion. Additionally, the community has also contributed to the burn, exceeding 68 billion tokens. Traders have responded positively to this development, leading to a 3% price increase for LUNC. This burn has generated enthusiasm within the community and contributed to the token’s market performance.
On July 1, Binance executed a transaction where they transferred 2.65 billion LUNC tokens to the burn address, effectively reducing the circulating supply of the tokens. The transaction also included a transaction fee of 13.25 million LUNC, further contributing to the burn process. This action by Binance demonstrates their commitment to reducing token supply and enhancing the overall ecosystem of Terra Classic (LUNC).
In the Terra Classic network, tokens are automatically burned with each transaction, and the amount burned is proportional to the tokens in circulation. This mechanism ensures a continuous reduction in the total token supply, potentially increasing their value over time. By implementing this burn mechanism, Terra Classic aims to create scarcity and promote value appreciation for the tokens.
We thank you @binance for the 2.65B #LUNC burn! 👍
We appreciate your support to help us burn our hyperinflated supply! 🔥
I voted YES to prop #11582, to burn the funds the community wrongly re-minted. 💯
Hopefully we can come to an agreement in our community to do the right… pic.twitter.com/c9YWEj3oKt
— JESUSisLORD (@ForTheCross_CH) July 2, 2023
Binance carried out a burn of 1.04 billion LUNC tokens in June. Despite Binance reducing its contribution from LUNC spot and margin trading fees from 100% to 50%, the community expressed gratitude for the support extended by the cryptocurrency exchange and its CEO, Changpeng Zhao.
The community acknowledged Binance’s continued commitment to the token burn process, fostering positive sentiment towards the exchange and its leadership.
The LUNC burn rate has shown improvement in the last two months, primarily due to the efforts of projects such as DFLunc, Terra Casino, and Cremation Coin, which regularly burn millions of LUNC tokens on a weekly basis.
As a result of these initiatives, the community has successfully burned a staggering 68 billion LUNC tokens. These collective efforts demonstrate the active engagement of the community in reducing the token supply and contributing to the long-term value proposition of LUNC.
After accomplishing its significant upgrade in May, which aimed to align the chain with Terra 2.0 and other Cosmos chains, the community’s attention has shifted towards reducing the supply of LUNC and TerraClassicUSD (USTC) tokens.
In line with this, the Joint L1 Task Force and the “quant” team are working together on the USTC repeg initiative. This collaborative effort demonstrates the community’s commitment to enhancing the token ecosystem and maintaining a sustainable and efficient network.
Throughout June, LUN faced challenges in surpassing the $0.0001 threshold and experienced a decline below the support level of $0.000090.
Despite the burn conducted by Binance, the price of LUNC continues to face downward pressure, indicating a sustained downward movement in the market. The token’s struggle to regain positive momentum suggests ongoing challenges in achieving price stability and investor confidence.
Based on CoinMarketCap data, LUNC has witnessed a 3% surge in price over the past 24 hours, currently trading at $0.000087 at the time of writing.
This recent increase provides a positive shift in the market for LUNC, potentially indicating renewed investor interest and trading activity.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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