The Terra Classic community expressed its gratitude via a post on X to Binance, the world’s leading cryptocurrency exchange, for burning 1.7 billion LUNC tokens. This recent burn, which occurred on July 1, 2024, marks the 23rd batch of Binance’s ongoing burn program for LUNC recovery.
The community’s appreciation was conveyed through a tweet directed at Binance, CEO Changpeng Zhao (“CZ”), and Richard Teng, CEO of Binance Labs. The tweet acknowledged Binance’s commitment to the revival of the Terra Classic ecosystem.
This burn initiative is a crucial aspect of the Terra Classic community’s efforts to reduce the circulating supply of LUNC tokens. By permanently removing tokens from circulation, the burn program aims to increase the scarcity of LUNC, potentially leading to a rise in its price over time.
The recent burn of 1.7 billion LUNC adds to the already significant contribution made by Binance, as they have burned nearly 62 billion LUNC tokens to date. This figure, when combined with the efforts of other members of the Terra Classic community, brings the total number of burned LUNC tokens to over 125 billion.
The community’s focus on reducing supply is a response to the LUNC implosion of May 2022. The Terra ecosystem experienced a financial crisis that resulted in the collapse of the TerraUSD (USTC) stablecoin and a subsequent plunge in the value of LUNC.
The ongoing burn program represents a collaborative effort between Binance and the Terra Classic community to restore stability and value to the LUNC token. This initiative is expected to continue, with additional support potentially coming from the implementation of Tax2Gas, a feature anticipated to launch this month.
Tax2Gas is a proposed mechanism within the Terra Classic network to redirect a portion of the transaction taxes collected on the blockchain toward further LUNC burns. This feature, if implemented, could significantly accelerate the rate at which LUNC tokens are removed from circulation.
The Terra Classic community’s positive response to Binance’s burn program highlights the importance of collaboration within the cryptocurrency industry. By working together, exchanges and communities can develop solutions to address challenges and foster the growth of specific digital assets.
The continued success of the LUNC burn initiative remains to be seen. However, the collaborative efforts of Binance and the Terra Classic community represent a significant step towards reviving the LUNC token and potentially restoring confidence in the Terra Classic ecosystem.
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