Binance, the world’s largest crypto exchange by trading volume, has reportedly burned a total of 5,595,907,838 LUNC tokens in a single transaction.
The new development was recently shared with the Terra Classic community via the official Twitter account of LunaBurnTracker.
LunaBurnTracker shared the actual figure, “Burn alert! 5,595,907,838 LUNC ($1,899,923) burned to Luna Burn Wallet!”
— LunaBurnTracker (@LunaBurnTracker) October 3, 2022
Although the identity of the entity behind the whooping LUNC burn cannot be ascertained, there is a consensus within the community that it’s no other exchange than Binance.
According to LUNC Dao in a recent tweet, “Binance just burned ~6 BILLION LUNC in one go. That’s about $2M dollars. Amazing And this was a low volume week relative to the last few months. They’ll be burning all fees every week. More volume = more burned.”
Binance just burned ~6 BILLION $LUNC in one go. That’s about $2M dollars. Amazing
And this was a low volume week relative to the last few months. They’ll be burning all fees every week. More volume = more burned
RT to thank Binance for their help 🔥
— 🔥🙏 𝕃𝕌ℕℂ 𝔻𝔸𝕆 🙏🔥 (@LUNCDAO) October 3, 2022
Binance exchange gave live to the burn initiative last week following the implementation of the LUNC burn proposal for Spot and Margin trading pairs.
On the 26th of September, Binance announced, “Binance will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address.”
Initially, the crypto exchange was skeptical about the 1.2% burn tax, leading to suggestions it cited as a means to maintain user experience on the trading platform. However, the exchange later succumbed to pressure from the teeming Terra Classic community members, who are bent on seeing a reduction to the whooping LUNC circulating supply.
Stating the reasons for bowing to the Terra Classic community’s pressure, Changpeng Zhao (CZ), the CEO of Binance said:
“Three things here: 1) The LUNC community wasn’t happy with this approach. 2) It’s going to take a while to develop. 3) It’s not going to work anyway. Our traders won’t vote for it. Since then, we were discussing a better, quicker way to support the community.
“Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance. Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’.
“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.”