Binance Burns 5.5 Billion Terra Classic in its Debut LUNC Burn

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Terra LUNC Community Approves New Measure to Reduce Tax Burn
Terra LUNC Community Approves New Measure to Reduce Tax Burn

Binance keeps its promise to the Terra community by instantly burning 5.5 billion terra classic (LUNC) tokens.

According to trade volume, Binance, the world’s largest exchange, will burn LUNC spot and margin trade fees. Amid the community’s apparent incessant agitation, Binance implemented the off-chain burn mechanism.

In response to its decision, Binance just burned 5.5 billion Terra Classic tokens worth approximately $1.8M. A Twitter account dedicated to tracking LUNC burn transactions reported the news.

“Burn alert! 5,595,907,838 LUNC ($1,899,923) burned to Luna Burn Wallet,” the handle noted, sharing a link to the transaction on the blockchain.

Related: Terra Investors Calls for Coinbase to List LUNC With Over 200,000 Tweets

Based on the transaction’s nature, the general consensus is that Binance initiated the burn because the identity of the entity behind it was not explicitly disclosed. Furthermore, the burn coincides with Binance’s announcement that it would be burning all of its LUNC trading fees.

Moreover, a crypto pundit dedicated to keeping the community up to date on LUNC developments claimed that the transaction came from Binance.

“BREAKING NEWS: 5.5 BILLION LUNC has just been burned. We strongly believe this is the Binance   burn.“ he noted.

As posted by LUNC DAO:

Related also: More Than 2 Trillion Terra Luna Classic (LUNC) Tokens To Be Burned By Kaj Labs

Binance Confirmed Announcement:

Binance officially confirmed that they had burned 5.5B LUNC after the community learned about the Terra classic burn.

Negative Remarks:

Amidst Binance’s commitment to upholding its end of the bargain, complaints have already surfaced. Some Terra supporters are dissatisfied with the amount of LUNC Binance burned in a week.

A pseudonymous crypto trader and engineer took to Twitter to examine the burn rate. Binance’s weekly burn rate, he claims, is not particularly encouraging, as it accounts for only 0.09% of LUNC’s current market capitalisation.

“The binance burn the LUNC community was waiting for just happened. One week’s worth of fees collected by Binance burned. The value? A meager $1.8m, 0.09% of market cap,” Tree of Alpha remarked.

Fatman wrote:

“At the behest of the “LUNC army,” Binance just threw $1.8 million into the burn address. This will have a 0.09% impact on supply reduction. Just think of how absurd this is. With that money, you could hire a dev team to build a suite of useful products/tools instead…”

The transaction is the first batch of LUNC burn Binance has performed since agreeing to implement the off-chain tax burn using trading fees.

Remember that, as previously reported by fxcryptonews, Binance caved into the Terra community’s demands for LUNC off-chain burns. In an official announcement on September 26, the exchange announced its decision to burn trading fees from LUNC spot and margin trades.

Binance will burn all fees earned from LUNC spot and margin trades from the previous week on Monday at midnight (UTC) every week, according to the announcement. The exchange also promised to update the community on the amount of money burned each week. Weekly burns official updates from Binance will be released every Tuesday.