Binance, the world's largest crypto exchange, has conducted its 11th batch of the Terra Classic (LUNC) burn mechanism, resulting in the burning of 2.65 billion LUNC tokens.
The total LUNC tokens burned by Binance now exceed 35.5 billion, while the community's burn surpasses 68 billion. Traders have reacted positively to the burn, leading to a 3% increase in LUNC price.
Based on a transaction executed on July 1, Binance transferred 2.65 billion Terra Classic (LUNC) tokens to the burn address with the aim of reducing the circulating supply of LUNC. The transaction also involved a transaction fee of 13.25 million LUNC.
The Luna Classic burn mechanism works by automatically burning tokens whenever a transaction occurs on the network. The number of tokens that are burned is relative to the number of tokens in circulation. This ensures that the total supply of tokens is constantly decreasing, thus increasing their value over time.
As reported by Coingape, Binance conducted a burn of 1.04 billion LUNC tokens in June. Although Binance reduced its contribution from LUNC spot and margin trading fees from 100% to 50%, the community expresses gratitude for the support provided by the crypto exchange and its CEO, Changpeng Zhao "CZ."
Over the past two months, the LUNC burn rate has shown improvement, thanks to initiatives from projects like DFLunc, TerraCasino, and Cremation Coin, which burn millions of LUNC tokens on a weekly basis. As a result, the community has successfully burned a total of 68 billion LUNC tokens.
Following the successful completion of its largest upgrade in the previous month, aiming to align the chain with Terra 2.0 and other Cosmos chains, the community's current focus is on decreasing the supply of LUNC and USTC tokens in the third quarter. Additionally, the Joint L1 Task Force and Quant team will collaborate on the USTC repeg initiative.
In June, the price of Terra Classic struggled to surpass the $0.0001 mark and declined below the support level of $0.000090. Despite Binance's burn, the LUNC price remains under pressure, showing continued downward movement.
According to Coinmarketcap, LUNC's price jumps 3% in the last 24 hours, with the price currently trading at $0.000087. The 24-hour low and high are $0.0000820 and $0.0000889, respectively. However, the trading volume has decreased in the last 24 hours.