The world’s largest crypto exchange, Binance, has recently conducted the 10th batch of its LUNC token burn mechanism, removing 1.04 billion LUNC tokens from circulation. This latest burn brings the total number of LUNC tokens destroyed by Binance to almost 33 billion. The market swiftly reacted to the development, with LUNC prices experiencing a noticeable increase.
This measure is part of Binance’s commitment to reducing the circulating supply of Terra Luna Classic (LUNC) tokens. The 1.04 billion tokens, along with an additional 5.22 million LUNC transaction fee, were sent to a burn address for the period between April 30 and May 30, 2023. The total LUNC burned by the platform thus far encompasses trading fees incurred on LUNC spot and margin trading pairs.
In comparison, Binance destroyed 1.27 billion LUNC tokens in May. However, the LUNC burn rate increased dramatically, thanks to DeFi protocol DFLunc’s action of burning over 2.5 billion LUNC. This demonstrates the community’s growing confidence in the project, particularly with its focus on the upcoming CosmWasm v2.1.0 parity upgrade slated for June 14.
The CosmWasm upgrade represents the most significant update to date, bringing Terra Classic to parity with other blockchains such as Terra 2.0 and Cosmos. Post-upgrade, developer Edward Kim and the Joint L1 Task Force group will collaborate on integrating the AI app chain “Block Entropy” into the Terra Classic chain, aiming to further enhance the project’s capabilities.
Other developments in the pipeline include changes to the burn tax, a 5% minimum commission fee for validators, and collaborating with the USTC repeg team to set up a USTC test environment. These developments could signal a potential boost for the LUNC token both in terms of quality and market sentiment.
In response to Binance’s recent burn, the LUNC price jumped 2% within 24 hours, reaching a trading price of $0.
Source: Coingape
