Leading cryptocurrency exchange Binance has revealed that in its third batch of Terra Classic ($LUNC) tokens burns it has destroyed 2.5 billion tokens, permanently removing them from circulation in a single transaction.
According to information from Binance’s pages, at the time of the burn, the $LUNC tokens were worth nearly $660,000 and were burned as a response to the $LUNC community’s proposal on burning trading fees on-chain.
The original Terra ecosystem collapsed earlier this year and later rebranded to Terra Classic, while a new, forked blockchain took the Terra brand with it. When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2% tax burn on all transactions conducted on the network.
Terra Classic’s price surged earlier this month after Binance announced it will implement the burn mechanism to burn all trading fees on $LUNC spot and margin trading pairs. As reported, Binance CEO Changpeng Zhao noted the exchange burned around 5.6 billion LUNC tokens on its first burn, at the time worth over $1.8 million.
Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, has submitted a proposal that outlines a solution to the problem of the uncollateralized TerraClassicUSD token. The developer’s proposal would recapitalize USTC via quantitative easing and quantitative tightening, with the use of “partitioned pools” and other solutions.
The cryptocurrency community is bullish on Terra Classic in the long run, as price estimates provided on CoinMarketCap have revealed that the $LUNC community expects to see the cryptocurrency’s price surge over 500% by the end of the year.
Binance’s latest burn comes at a time in which the Terra Classic community passed Proposal 5234, which reduces the tax burn for on-chain $LUNC and $USTC transactions from 1.2% to 0.2%. The change is being supported by Binance.
As CryptoGlobe reported, the Terra Classic community, has been battling for increased adoption and even created a petition to get listed on cryptocurrency exchange Coinbase.
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