Major cryptocurrency exchange Binance announced the launch of a burning mechanism for Terra Classic’s native crypto asset—Luna Classic (LUNC) in later part of September, 2022. The crypto exchange reported to submit its first installment of its commitment of LUNC burn.
On 3rd October, 2022, nearly a week later after the announcement, Binance went on to Twitter informing completion of the very first Luna Classic (LUNC) burn. The assets burnt were collected from LUNC spot and margin trading pairs in form of trading fees.
According to the report, the brunt assets belong to the batch of trading fees collected from transactions between 21st, September to 1st, October, 2022. After collecting the all over fees from between the given timeframe and then converted into Luna Classic (LUNC)—regardless of their origin both LUNC and other than LUNC.
Overall, 5.5 billion tokens were burnt which is equivalent to approx 1.7 million USD.
Luna Classic (LUNC) burn from Binance follows the similar phenomenon for general crypto asset burn—by sending the assets to a dead wallet. The trading fees in LUNC sent to a specific Luna Classic “burn wallet”. This way the burnt crypto assets get eliminated from the current circulating supply forever.
Impact of Luna Classic (LUNC) Burn
The burn mechanism from the leading crypto exchange came in the wake of efforts to enhance the trading experience following the LUNC community’s burning proposal. Binance ensured all burnt Luna Classic (LUNC) tokens would not make any impact on LUNC spot and margin trading fees.
The instance acted as the catalyst to boost the price of Terra’s native asset. Luna Classic (LUNC) reported to surge upto 59.4% following the burn. The burn event received notable response from the community—both positive and negative though.
Several traders were not satisfied with the amount of crypto assets burnt, noting the recent burn eliminated only about 0.09% of the entire market capitalization of Luna Classic (LUNC). In contrast, some were also seen to enjoy the event and suggested the traders to dump the coin.
Source: https://www.thecoinrepublic.com/2022/10/04/luna-classic-lunc-binance-fulfilling-the-commitment-of-lunc-burn/