- In addition to the monthly burn, Binance will conduct an additional 5 LUNC burns in September.
- The LUNC community is expecting huge losses for LUNC due to TerraForm bankruptcy.
- Despite its 10% gain, Terra Luna Classic lagged in one important metric.
Amid the development whirlwind of the Terra Luna Classic (LUNC) blockchain, Binance has decided to raise the bar for the LUNC burn. So far, major backers of the Terra Classic burn have contributed $64.47 billion to this initiative. In addition to the regular practice of burning 50% of the accumulated LUNC trading pair fees on the 1st of every month, Binance has organized five more LUNC burns in September 2024.
How Binance Burned Over $100K Worth of LUNC
The additional LUNC burn has sparked optimism in the community as Binance has earned a significant $97,229.23 in fees between July 31, 2024 and August 29, 2024. For the additional burn, 199,389 LUNC tokens were sent to the burner in five separate transactions. Meanwhile, LUNC members are voting in favor of a governance proposal that would maintain a minimum $500 collateral deposit for new proposals and impose an oracle-based quality control mechanism.
However, Terra Classic’s revival efforts are hampered by very low trading volumes. It is currently trading at $33,298,448 over the past 24 hours, which is significantly smaller than its peers in the top 100 by global market cap. Despite this, LUNC is providing more volume to coins like Axie Infinity (AXS) and Mantra (OM), which have seen double-digit price gains in recent weeks.
Slow volumes challenge LUNC
As of today, the remaining supply of Terra Luna Classic is 6,774,134,294,251, with over 15% of the circulating supply invested as stakes. The price of this game-tested altcoin has seen a slight increase of 1.7% amidst the bullish Binance burn mechanism update. At the time of writing, LUNC is trading at $0.00008749. In order to erase the zero in the price, LUNC will need to gain speed in both the spot and derivatives markets.
Despite the 128% increase in the 1000 LUNC smart contracts multiplied by 1000x in derivatives, the total trading volume of derivatives is less than $50 million per day. Terra Luna Classic, which has regained its $500 million market cap and is up 10% in the last 30 days, could potentially take the lead in the community initiative to increase the LUNC burn tax rate as the Tax2Gas mechanism is being developed by Genuine Labs.
On the other side
- In addition to the Binance LUNC burn, the Terra Luna Classic community I am looking for Explaining the LUNC Burn Due to the TerraForm Labs Bankruptcy
- Due to Chapter 11 bankruptcy, TerraForm Labs would need to liquidate its remaining LUNC, LUNA, and USTC digital assets in order to qualify for bankruptcy protection.
Why this matters
A burn initiative in collaboration with major centralized exchanges can significantly reduce the excessive supply by positively changing the coin’s behavior.
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