Leading cryptocurrency exchange Binance has recently burned a total of 1.04 billion tokens of Terra Classic ($LUNC), effectively making the 10th burn as part of the LUNC burn mechanism, which to date has seen a total of nearly 33 billion LUNC get burned.
This latest burn, covering the period from April 30 to May 30, 2023, also incorporated a transaction fee of 5.22 million LUNC tokens. To date, Binance has burned close to 33 billion Terra Classic tokens, accumulated as trading fees from LUNC spot and margin trading pairs.
It’s worth noting that the original Terra ecosystem collapsed last 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 $LUNC supporters have added a 1.2% tax burn on all transactions conducted on the network.
The Terra Classic community, has been battling for increased adoption and even created a petition to get listed on cryptocurrency exchange Coinbase.
Interestingly, despite a reduction in the contribution of LUNC spot and margin trading fees from 100% to 50%, causing a corresponding decrease in Binance’s LUNC burns, the overall burn rate of the cryptocurrency saw a significant uptick in May as decentralized finance protocol DFLunc burned an additional 2.5 billion tokens.
Among some of the developments on the horizon for LUNC are amendments to burn tax regulations, the implementation of a 5% minimum commission fee for validators, and collaboration with the USTC repeg team to establish a USTC test environment.
As CryptoGlobe reported, Binance has supported LUNC’s network upgrades to date, including one that set seigniorage rewards on the network to 0%. Binance has been supporting the network’s token burns, with for example its third batch of burns destroying 2.5 billion tokens, permanently removing them from circulation in a single transaction.
Last month, in an effort to re-peg TerraClassicUSD ($USTC) to the dollar, the LUNC community mulled over a proposal that involved a mechanism that includes divergence fees on USTC trades that deviate from the peg.
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