Binance Destroys 2.65 Billion Terra Classic Tokens in Latest Burn Round

The world-renowned cryptocurrency exchange, Binance, has executed the 11th burn round, which led to the destruction of 2.65 billion Terra Classic (LUNC) tokens.

With the move, Binance is gradually reducing the number of LUNC tokens in circulation, a move that some market observers believe could enhance their value over time. 

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Binance completed the burn by transferring the specified amount of LUNC tokens to the dedicated burn address. To complete the transaction, Binance also incurred a fee of 13.25 million LUNC tokens.

It is worth noting that the act of burning was met with positive market sentiment, evidenced by a 3% uptick in the price of LUNC after Binance completed its burning process.

Through 11 sessions, Binance burned a jaw-dropping 35.5 billion Terra Classic (LUNC). Remarkably, the community has eclipsed this figure, having burnt more than 68 billion LUNC tokens.

The Terra Classic network's inherent burn mechanism is designed to eliminate tokens every time a transaction takes place. The scale of burning is proportional to the number of tokens circulating, contributing to a continual decrease in the total supply.

Recent initiatives from projects such as DFLunc, Terra Casino, and Cremation Coin, which burn millions of LUNC tokens weekly, have expedited the LUNC burn rate over the past couple of months.

In June, as Coingape reported, Binance burnt a substantial amount of 1.04 billion LUNC tokens. Even as Binance halved its contribution from the LUNC spot and margin trading fees from 100% to 50%, the community appreciated the unwavering support extended by the crypto exchange and its Chief Executive Officer, Changpeng Zhao.

Despite these actions, the LUNC price is experiencing downward pressure and has struggled to surpass the $0.0001 mark, even slipping below the support level of $0.000090. At the time of writing, Luna Classic (LUNC) retails for $0.0000873, recording a 0.31% increase in the last 24 hours.

Binance's latest burn round reflects a continuous effort to manage the token supply, highlighting the dynamic nature of the crypto market.