Binance Burns Billions of Tokens
Binance Burns 2.65 Billion Tokens, LUNC Price Rises Despite Continued Pressure
Binance, the largest crypto exchange, has destroyed 2.65 billion Terra Classic (LUNC) tokens in its latest burning event. This makes the total LUNC tokens burned by Binance over 35.5 billion, with the community burning more than 68 billion. This news made the LUNC price rise by 3%.
On July 1, Binance moved 2.65 billion LUNC tokens to the burn address, effectively reducing the number of tokens available. The move also involved a 13.25 million LUNC fee.
Terra Classic has a built-in feature that automatically destroys tokens with every transaction. The amount destroyed is proportional to the amount in circulation. This means the total supply of tokens constantly drops, theoretically increasing their value over time.
Binance previously burned 1.04 billion LUNC tokens in June. Even though it reduced its cut from LUNC trading fees from 100% to 50%, the community appreciated Binance and its CEO, Changpeng Zhao.
With the help of projects like DFLunc, Terra Casino and Cremation Coin, the LUNC burn rate has improved in the last two months. As a result, the community has burned 68 billion LUNC tokens. Now, they're focusing on decreasing the supply of LUNC and TerraClassicUSD (USTC) tokens after a successful upgrade in May.
However, despite the burn, LUNC's price is still under pressure and shows a downward trend.
