Binance's 11th LUNC Burn: 2.65 Billion Tokens Destroyed in Major Crypto Event

Bombolo | News and Media

Cryptocurrency exchange giant Binance has recently completed its 11th burn round, torching an impressive 2.65 billion Terra Classic (LUNC) tokens. This latest burn brings the total number of LUNC tokens burned by Binance to over 35.5 billion, with the community itself contributing to the burn of more than 68 billion tokens. The burning process has garnered positive attention from traders, as LUNC experienced a 3% price increase following the event.

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The Burn Process and Transaction Details

Cryptocurrency exchange giant Binance has recently completed its 11th burn round, torching an impressive 2.65 billion Terra Classic (LUNC) tokens. This latest burn brings the total number of LUNC tokens burned by Binance to over 35.5 billion, with the community itself contributing to the burn of more than 68 billion tokens. The burning process has garnered positive attention from traders, as LUNC experienced a 3% price increase following the event.

The Burn Process and Transaction Details

Binance's burn mechanism ensures a reduction in the circulating supply of LUNC tokens by automatically burning them whenever a transaction takes place on the network. The number of tokens burned is proportional to the number in circulation, resulting in a constant decrease in the total supply. This process theoretically enhances the value of the remaining tokens over time.

On July 1, Binance executed a transaction that involved the transfer of 2.65 billion LUNC tokens to the burn address, effectively removing them from circulation. Additionally, the transaction incurred a transaction fee of 13.25 million LUNC tokens.

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Binance and the LUNC Community

In June, Binance conducted a burn round during which 1.04 billion LUNC tokens were destroyed. Although Binance reduced its contribution from LUNC spot and margin trading fees from 100% to 50%, the community expressed appreciation for the support offered by Binance and its CEO, Changpeng Zhao.

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Recent initiatives from projects like DFLunc, Terra Casino, and Cremation Coin have significantly improved the LUNC burn rate over the past two months. These projects have been burning millions of LUNC tokens on a weekly basis, contributing to the overall reduction of 68 billion tokens. Currently, the LUNC community is focused on decreasing the supply of both LUNC and TerraClassicUSD (USTC) tokens, following the successful completion of the largest upgrade in May. This upgrade aimed to align the chain with Terra 2.0 and other Cosmos chains. Additionally, the Joint L1 Task Force and the "quant" team will collaborate on the USTC repeg initiative.

LUNC Price Movement and Market Outlook

Despite Binance's consistent token burning efforts, the price of LUNC has faced ongoing downward pressure. In June, LUNC struggled to surpass the $0.0001 mark and dropped below the support level of $0.000090.

At the time of writing, LUNC's price has shown a slight improvement, rising by 3% in the last 24 hours and currently trading at $0.000087, according to CoinMarketCap.

Binance's 11th burn round, which saw the destruction of 2.65 billion LUNC tokens, has continued the ongoing process of reducing the circulating supply. With Binance and the community's combined efforts, the total burn now exceeds 68 billion tokens, demonstrating their commitment to increasing the value of LUNC tokens over time.

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FAQs

How does Binance burn LUNC tokens?

Binance employs an automatic burn mechanism that triggers whenever a transaction occurs on the network. The number of tokens burned is proportional to the number in circulation, ensuring a gradual reduction in the total supply.

What is the purpose of burning LUNC tokens?

Burning LUNC tokens reduces the circulating supply, theoretically increasing the value of the remaining tokens over time. It also helps align the chain with Terra 2.0 and other Cosmos chains.

How often does Binance conduct burn rounds?

Binance conducts burn rounds periodically, with the 11th round being the most recent. The frequency of burn rounds may vary depending on various factors.

What initiatives have contributed to the LUNC burn rate improvement?

Projects like DFLunc, Terra Casino, and Cremation Coin have been instrumental in improving the LUNC burn rate. These projects burn millions of LUNC tokens weekly, further reducing the overall supply.

Will the LUNC price continue to rise following the burn?

While Binance's burn rounds aim to enhance the value of LUNC tokens, market forces can influence price movements. It's important to monitor market conditions and developments to gauge the future trajectory of the price.