- Binance has burned 1.41 billion LUNC tokens in the 12th batch of the LUNC burn mechanism, contributing to reducing the circulating supply of LUNC.
- The TerraCVita team released a whitepaper for the Terraport project, aiming to burn billions of LUNC tokens every week and increase the value of the protocol native token, TERRA.
Our report earlier highlighted that despite the collapse of the Terra ecosystem in May 2022, the Terra Classic (LUNC) network has managed to capture attention with occasional price pumps at different intervals. This article explores the recent developments surrounding Binance’s LUNC token burn and the community’s active participation in the burning process. Additionally, we delve into the TerraCVita team’s Terraport project, which presents an exciting opportunity for further LUNC token burns and potential implications for investors.
Binance Burns 1.41 Billion LUNC Tokens with Transaction Fee
Binance, the world’s largest crypto exchange, has executed its 12th batch of the LUNC burn mechanism, successfully burning 1.41 billion Terra Luna Classic (LUNC) tokens. This strategic move, according to a transaction on August 1, is part of Binance’s ongoing commitment to reducing the circulating supply of LUNC tokens. The transaction also includes a transaction fee of 7.06 million LUNC.
With this recent burn, the total LUNC tokens burned by Binance reaches near 37 billion. Remarkably, the Terra Luna Classic community has also been actively involved in the token burning process, collectively surpassing the milestone of burning 71.5 billion LUNC tokens.
Positive Sentiment Fuels Token Burn Rate
The month of July witnessed a notable surge in the burn rate of LUNC tokens, primarily driven by the positive sentiment prevailing within the Terra Luna Classic community. Several factors contributed to this heightened momentum, including the successful parity upgrade, the introduction of Professor Edward Kim’s AI app chain Block Entropy, and the USTC repeg plan.
TerraCVita Unveils Terraport Project
In an exciting development, the TerraCVita development group has unveiled its decentralized finance (DeFi) project called Terraport. This ambitious project aims to offer users a decentralized exchange for both on-chain and cross-chain asset trading. In addition to the exchange feature, Terraport includes a launchpad to facilitate funding for new ventures and a lottery game for entertainment.
Weekly Token Burns and Increased Scarcity
The TerraCVita team’s whitepaper outlines a comprehensive plan to burn billions of LUNC tokens every week in a bid to decrease the circulating supply. The process involves the treasury buying back LUNC tokens and allocating 27 percent of all fees received weekly for this purpose.
This strategy aims to create increased scarcity and, in turn, drive up the value of the protocol native token, TERRA. Furthermore, the treasury will conduct weekly burns of the TERRA token, further contributing to the reduction of its circulating supply.
The Future of LUNC Tokens
Despite facing challenges, Terra Luna Classic (LUNC) has continued to capture attention with occasional price pumps. The burning of billions of LUNC tokens could potentially have a positive impact on token prices. However, it is essential to note that the current total circulating supply of LUNC stands at 5.9 trillion tokens, indicating that there is still a considerable amount of supply in the market.
