Binance Increases Support for LUNC as it Revises Burning

• Binance has changed its LUNC burn mechanism after it subjected the token to multiple burns this month instead of the usual burn on the first day of every month. 

• The LUNC community is voting on a proposal to correct its number of validators which was mistakenly changed after an SDK update. 

Binance is reported to have likely reversed its Terra Luna Classic (LUNC) burn mechanism after sealing its dominance as the largest contributor, with 64.47 billion LUNC burned in support of the chain and price revival. According to reports, the exchange subjected the token to multiple burns this month against the initially scheduled number of monthly burns. 

The Background 

Binance announced in 2022 that it would undergo major changes by burning LUNC trading fees as part of its continued contribution to the drastic reduction of supply. This implied that 50% of the LUNC spot and margin trading fees would be burnt instead of 100%. In addition to that, it announced that the sending of the LUNC trading fee burn contribution would be delayed until March 1, 2023 to be excluded from being re-minted. 

One observation was that Binance frequently burned Terra Luna Classic tokens on the first day of every month. However, this pattern suddenly changed as the exchange burned the token six times this month.

In its recent 25th batch of burn mechanisms reported by CNF, Binance burned 1.19 billion LUNC tokens with $97,229.23 in trading fees between July 31 and August 29. In addition to the main burn, Binance has burned 199,389 LUNC tokens in five separate transactions until now. This has bred speculations that the burn mechanism formerly instituted by the exchange has been reversed. 

Following this report, LUNC surged by 3% in 24 hours but soon flipped to the negative side of the price curve as it fell by 0.35% at press time. Currently, the asset is trading at $0.000085. 

LUNC Latest Proposals

Moving away from the inconsistencies of the token burn mechanism, the LUNC community recently unveiled a new proposal (Proposal 12133) to correct the error of the number of validators allowed to work on the network. This number mistakenly changed after a recent SDK update. According to reports, the proposal would restore the maximum number of validators to 100. To analysts, this could position the asset for a bull run in the near term. 

A recent analysis by a renowned technical analyst revealed that LUNC has a bullish outlook as the Moving Average Convergence Divergence (MACD) indicator meets at a positive end. Also, its Relative Strength Index (RSI) indicated that the market sentiment is currently neutral. According to the analysis, LUNC could soon target the $0.0001 crucial resistance level and subsequently move to the $0.0003 zone. 

In a couple of months ago, another analyst, identified as Javon Marks, also predicted that the asset would likely stage a rebound to hit $0.0004. 

$LUNC (Terra Classic) has returned with MAJOR STRENGTH here after holding a Bullish Divergence with the OBV, and this may be the start of a much greater run!
With a breakout target at $0.00042986, prices can be set for an over 342% climb to reach and break above it, and this… https://t.co/nYY95CiCLf pic.twitter.com/DoATH1q2ei— JAVON⚡️MARKS (@JavonTM1) July 16, 2024

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