Binance has announced the successful completion of its first-ever token burn on LUNC, increasing the likelihood of a parabolic run for the Terra-based cryptocurrency.
Binance tweeted, “Binance completes the first $LUNC burn, burning all trading fees collected from LUNC spot and margin trading pairs.”
According to a tweet by Binance CEO CZ, around 5.5 billion LUNC worth approximately $1.8 million were removed from circulation during the burn. Consequently, the trades that generated the burned fees occurred between September 21, 2022, and October 1, 2022.
LUNC is the Terra Classic Blockchain’s native token. In May, with the implosion of Terra, the token experienced hyperinflation of over 100%. Despite most users leaving the ecosystem, a few individuals remained and have been working to revitalise it by creating strategies to lower the token’s oversupply.
The Terra community passed two proposals to impose a 1.2% tax burn on on-chain transactions of LUNC and USTC on the Terra Classic Network earlier this month. Binance vowed to help the LUNC community by developing a method to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address.
#Binance will implement a burn mechanism to burn all trading fees on $LUNC spot and margin trading pairs. https://t.co/Depz9nYDVO
— Binance (@binance) September 26, 2022
In the second series of tweets, the CEO of Binance, CZ, indicated that the exchange would convert trading fees into LUNC before sending them to the burn address and that the exchange would cover expenditures incurred during the burn.
LUNC Burner indicates that around 0.2% of the entire supply of LUNC has been burned, with Binance responsible for approximately 0.08%. The burn rate is projected to grow when more exchanges support LUNC’s deflation, despite unimpressive data because there are over 6.8 trillion tokens in circulation.
Nevertheless, as token burning supposedly benefits price, investors have been purchasing LUNC in large quantities, substantially increasing the cryptocurrency’s price and volume.
As a result of the community’s burn suggestion, the coin’s value surpassed 300% in September. Over the past two months, LUNC has risen by over 200%, reaching a high of $0.0003695 over the weekend.
However, LUNC is still a considerable distance from recapturing its all-time high of $119.18; a more aggressive burn policy could resolve this issue. The coin sold at $0.0003101 following a 24-hour decline of 8.54%.