In an October 3 update, Binance CEO Changpeng Zhao said the exchange burned approximately $1.8 million worth of Terra Classic (LUNC) — formerly Terra (LUNA) — in transaction fees for LUNC/BUSD and LUNC/USDT spot and margin trading pairs. According to Binance, the burn included 1,863,213.47 Tether (USDT) – about 5.5 million LUNC.
The exchange’s initial announcement from September 26 stated that the burn will be completed every Monday – making the next event on October 10 – sending transaction fees to a LUNC burning address. Many in the Terra community have suggested the burn strategy as part of an effort to revive LUNC, which dropped in price almost to zero in May and grew 250% faster in September.
While many are excited about the move, others believe it will be some time before the amount burned has enough impact to reduce LUNC’s total supply of nearly 7 trillion.
One Twitter user pointed out that it will take 15 years to reduce the supply to 10 billion at this rate. Meanwhile, the burning has yet to affect LUNC’s price. The digital asset has lost about 6.7% of its value in the past 24 hours.
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