Binance Burns 760.42 million Terra Luna Classic (LUNC) Tokens
On November 1, 2023, Binance, the world’s largest cryptocurrency exchange, executed the burning of 760.42 million Terra Luna Classic (LUNC) tokens. This action has now brought the total number of LUNC tokens burned by Binance to nearly 40 billion.
The token burning process entails Binance permanently removing LUNC tokens from circulation by transferring them to a burn address, a specialized wallet inaccessible to anyone.
Binance initiated the burning of LUNC tokens in May 2022, as a strategic move to decrease the token’s circulating supply and subsequently boost its market price. This periodic process involves Binance using a portion of the trading fees collected from LUNC trading each month for the purpose of token burning.
Binance LUNC Burn Tax
The Binance LUNC burn tax was initially set at 1.2% which was later lowered to 0.2%. However, in May 2023 after the community voting, the LUNC burn tax rate was increased to 0.5%.
What impact the burning of LUNC tokens have?
The burning of LUNC tokens is likely to have a positive impact on the price of the token. As the circulating supply of LUNC tokens decreases, demand for the token is likely to increase. This could lead to higher prices for the token.
The burning of LUNC tokens is also likely to make the token more attractive to investors. Investors are often drawn to scarce assets, as they are seen as being more valuable than abundant assets.
LUNC Token Circulation
According to Coinmarketcap data, the total supply of Luna Classic (LUNC) currently stands at 6,832,795,932,996 tokens, with a circulating supply of 5,804,323,516,404 LUNC. Notably, the circulating supply has decreased over the past year, as it was 6.15 trillion tokens a year ago.
Since May 13, 2022, a total of 76.02 billion LUNC tokens have been removed from circulation. Out of this, 26.54 billion LUNC has been burned on-chain, representing 35% of the total burn, while 49.49 billion LUNC has been added to the Burn Wallet, accounting for the remaining 65%. Over the past week, an average of 267.74 million LUNC tokens were burned daily, reflecting ongoing activity in the reduction of circulating supply.
Luna Classic LUNC Performance
Luna Classic is once again below $0.000065. With increasing selling pressure, the buyers failed to defend the $0.000065 and now the LUNC is trading marginally above $0.000060. Technically LUNC is now bearish.
In the last 30 days, LUNC has lost around 3% of its value and it is currently underperforming the overall crypto market.