Since the 1.2% burn tax started, billions of Terra Classic (LUNC) tokens have been burnt from the total supply to revive the asset value.
According to LUNC Burn, an official Twitter account that monitors LUNC burns, 13.7 billion Luna Classic tokens out of the total supply of the cryptocurrency have been burned.
The funds are worth approximately $4.37 million at the current exchange rate of $0.00031588. However, 3.76 billion Luna tokens have been destroyed in the tax burn.
How Binance Influenced the Burn
Binance, the largest exchange in the world, significantly influenced the amount of LUNC tokens burned.
As of October 3, the total LUNC burns were slightly above 8 billion. Binance burned a record 5.5 billion LUNC in a single transaction.
The fees generated from the transaction from LUNC spot and margin trading pairs were used to purchase the tokens, which led to the total burn exceeding 13 billion.
Shortly after the 1.2% burn tax proposal last month, Binance CEO Changpeng “CZ” Zhao took to Twitter to comment on why the firm had opted for the burn.
“Fees will be converted to LUNC and sent to the burn address. The burn is paid at our expense, not to the users,” he wrote. “This way, we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”
1.2% LUNC Burn Tax
The program LUNC burn was started by those who lost everything in the Terra collapse to compensate for their losses. The Terra community and its central figures since the first iteration of the Terra blockchain and UST stablecoin suffered a $40 billion wipeout in May.
Investors were asked to send some of their LUNC tokens to a burning wallet to lower the total amount of the LUNC tokens in circulation. The fees are burned, making them inaccessible to users, thereby decreasing their supply.
Following the 1.2% tax burn proposal last month, burns have drastically increased.
Cryptocurrency exchanges such as Binance and MEXC Global contributed significantly to the burning of LUNC tokens due to LUNC spot and margin trading pairs.
LUNC Staking On The Rise
The Terra Classic community intends to reduce LUNC’s supply in circulation. 657.4 billion Luna Classic tokens have been staked as part of the community’s LUNC staking initiative.
Do Kwon Gets Boost
Co-founder of Terra, Do Kwon, who is now a crypto-fugitive, received a boost after a court let an executive connected to his failed Terraform Labs ecosystem avoid jail.
The surname of the person who evaded jail is Yu. The person is suspected to be Terra’s head of general affairs, Yu Mo.
On Thursday, prosecutors said that Yu had been detained on suspicion of breaking the capital markets law, committing fraud, and breach of duty related to market manipulation.