On September 26, the Binance exchange announced the implementation of the burn of all trading fees obtained from LUNC spot and margin trades. This development came after the exchange had earlier enacted the 1.2% tax burn on LUNC deposit and withdrawal operations on the exchange.
To note, the Terra Classic token burned courtesy of LUNC spot and margin trading fees on CZ’s Binance are at the expense of the exchange and not users. Of course, this unexpected approach from the top exchange triggered a rally in the price of the community-led token while the Terra Classic community showed their excitement via comments on the burn implementation announcement.
Binance Alone Could Burn Up To 1 Trillion LUNC in a Year
Earlier today, Terra Rebel, a team of Terra Classic developers behind the growth of the project disclosed how much LUNC has been traded on Binance and how much the top exchange could contribute to the reduction of the Terra Classic total supply in a year.
According to the screenshot shared in a tweet by TerraRebel, LUNC 24 hours trading volume in USD on Binance was as high as 899.03 million. While its sister token LUNA had a trading volume of $132.74 million and Terra Classic USD (USTC) recorded a 24 hours trading volume of 64.95 million dollars.
The update by TerraRebel further forecasted that Binance alone could burn up to 1 trillion LUNC in a year if a 0.1% trading fee was applied. The teeming Terra Classic community is aiming at reducing the total supply of its native token to 10 billion from the initial ~6.9 trillion.
“With this volume ‘if’ the fees sent to burn were 0.1%. That would be approximately 1Tn Lunc burnt a year by Binance alone,” Terra Rebel tweeted.
With this volume 'if' the fees sent to burn were 0.1%. That would be approximately 1Tn Lunc burnt a year by Binance alone 🔥. pic.twitter.com/CamsBpg5Nr
— TerraRebel (@RexYellerBelly) September 26, 2022
Binance Updates Deposit and Withdrawal Fees for LUNC and USTC
The largest crypto exchange by trading volume has equally shared an update on the deposit and withdrawal fees for LUNC and USTC on the Terra Classic network, following the feedback from the community. Per the announcement, Binance is set to modify how these tokens are credited into users’ wallets when sent from an external wallet. Similarly, it added that charges on LUNC and USTC withdrawals will be changed.
Part of the announcement read;
“LUNC and USTC deposits to Binance are subject to the withdrawal fees charged by other exchanges or platforms, where applicable. Binance will apply a 1.2% consolidation fee for all deposits received by Binance before crediting to users’ accounts due to the 1.2% tax burn implemented on LUNC and USTC transactions on the Terra Classic network. Users will receive the withdrawal amount minus withdrawal fees charged by Binance and the 1.2% tax burn.”