Thursday, June 20, 2024
HomeCryptocurrenciesAltcoinsBinance Burns 1.6B LUNC Tokens, LUNC Price Jumps 3%

Binance Burns 1.6B LUNC Tokens, LUNC Price Jumps 3%

The cryptocurrency market is buzzing with the news of the world’s largest crypto exchange Binance burning 1.6 billion Terra Luna Classic (LUNC) tokens in the latest batch of the LUNC burn mechanism. This move is expected to reduce the LUNC circulating supply and provide a boost to the LUNC price, which has already jumped nearly 3% in the last 24 hours.

Let’s take a closer look at what this means for the Terra Luna Classic community and the broader crypto market.

Binance’s LUNC Burn Mechanism

Binance, the largest cryptocurrency exchange by trading volume, has been an active participant in the Terra Luna Classic community’s burn mechanism. The latest batch marks the 8th time Binance has burned LUNC tokens, contributing 58% to the total LUNC burned so far.

The burn mechanism involves sending tokens to a burn address, effectively removing them from circulation and reducing the token supply. With the latest burn, Binance has burned over 30.5 billion Terra Classic tokens in total from spot and margin trading fees.

However, the decline in Binance’s LUNC burn contribution is due to the community passing Proposal 10983, which funds the community pool with 50% of the 0.2% burn tax instead of 10% for on-chain development. This change led to Binance burning only 50% of the LUNC trading fees instead of the previous 100%.

LUNC graph

The LUNC Price Reaction

The anticipation of Binance’s latest burn mechanism has driven up the LUNC price by 3% in the last 24 hours, with the price currently trading at $0.000125. The 24-hour low and high are $0.000122 and $0.000126, respectively. Additionally, trading volume has increased by 15% in the last 24 hours, indicating an increase in investor interest.

It’s important to note that the LUNC price failed to build an upside move in March after bullish momentum in the previous two months. However, with the latest burn, the community may see a renewed bullish sentiment and price movement.

Community Goals

The Terra Luna Classic community is currently focused on achieving its goal related to artificial intelligence, with core developer Edward Kim hinting at Terra Classic becoming an AI chain. Despite eagerly awaiting massive burn events, the community voted down proposals related to increasing the burn rate, with some fearing that Binance could reduce or withdraw its LUNC burn mechanism.

Binance’s latest burn mechanism has sent shockwaves through the Terra Luna Classic community and the broader crypto market. With the LUNC price already up by 3% in the last 24 hours, investors are eagerly watching to see if the community can achieve its goals and drive up the price further.

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