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Binance Annihilates a Massive Number of Terra Classic Tokens
Binance, the world's pioneering cryptocurrency exchange, has obliterated an astounding 2.65 billion Terra Classic (LUNC) tokens in its latest, and eleventh, token burning session. The total number of LUNC tokens destroyed by Binance now exceeds the extraordinary figure of 35.5 billion units. Along with tokens burned by the community, the total number exceeds 68 billion. This act of incineration led to a slight increase in LUNC's price, with a surge of approximately 3%.
Understanding the Terra Classic Token Burn Mechanism
On July 1, Binance transferred 2.65 billion LUNC tokens to the burn address in an effort to decrease the circulating supply, also involving a transaction fee of 13.25 million LUNC. The token burn mechanism for Terra Classic is designed to automatically destroy tokens with every transaction conducted on the network. The number of tokens incinerated is directly proportional to the total circulated supply, ensuring a continuous reduction in the total supply, which could potentially increase their value in the future.
Accelerated LUNC Token Burn
In recent months, initiatives from projects such as DFLunc, Terra Casino, and Cremation Coin have contributed to a significant increase in the rate of LUNC incineration. These collective efforts have successfully resulted in the burning of a remarkable 68 billion LUNC tokens. Since implementing a substantial upgrade in May to ensure compatibility with Terra 2.0 and other Cosmos chains, the community has been consciously working to limit the supply of LUNC and TerraClassicUSD (USTC) tokens.
Continued Downward Trend of LUNC Price Despite Burning
Despite the massive burn, the price of LUNC continues to face downward pressure. In June, LUNC struggled to climb above the $0.0001 barrier, often falling below the $0.000090 support level. According to data from CoinMarketCap, despite the decrease in supply, LUNC's price has only risen by around 3% in the past 24 hours and currently trades at $0.000087.
