LUNC has been trending again ever since the top centralized cryptocurrency marketplace executed its seventh batch of Terra Classic token burns. With the date of the next LUNC burn event confirmed, the price of LUNC could spike significantly in the coming weeks.
Binance, the world’s largest blockchain ecosystem, and leading digital assets exchange resumed LUNC burning on March 2, having suspended its voluntary monthly burning events in December to avoid the reminting of burned LUNC. This development followed after the Terra Classic V.1.1.0 upgrade was completed.
The Thursday burning of 8.9 billion LUNC marked the 7th batch of the exchange’s huge contribution to the Terra Classic community’s objective of reducing LUNC total supply from the initial 6.9 trillion to 10 billion only.
As things stand, Binance has now burned 28.95 billion LUNC so far, making the exchange the highest contributor to the Terra Classic token reduction expedition. Lunc Tax and Lunatics Token are the second and third largest contributors with 14.6 LUNC and 2.2 LUNC destroyed at the time of writing.
Accordingly, the CZ-led exchange has incinerated more than 53% of the total LUNC burned. LUNCDash, a platform that tracks all Terra Classic burns, showed that the total LUNC burned is approximately 48.7 billion at the time of writing.
Binance Next LUNC Burn
Per an updated post by the top exchange, LUNC burns have come to stay except otherwise stated. Therefore, since October 2022, Binance has been voluntarily burning the trading fees derived from LUNC spot and margin trading.
That is, on the first day of every month, the exchange calculates the total trading fees on LUNC spot and margin trading pairs to be burned from the previous month at 00:00:00 (UTC).
These trading fees on LUNC spot and margin trading pairs collected in USDT, BUSD, and BNB are usually converted to LUNC with the real-time exchange rates on Binance on the first day of every week at 00:00:00 (UTC) and burned on the second day of every month.
Accordingly, on April 1, the eighth batch of trading fees on LUNC spot and margin trading pairs to be burned will be calculated from February 28 to March 31. Then on April 2, 50% of the total trading fees derived will be converted to LUNC and sent to the Terra Classic official burn wallet.
Notably, from batch 1 to batch 6 Binance LUNC burns, 100% of the LUNC spot and margin trading fees were burned. The 50% reduction was triggered by the controversial reminting agenda introduced by the project community. Although reminting burned LUNC was halted in January, Binance is yet to return to 100% trading fees burn.
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However, Terra Classic community members and other cryptocurrency strategists speculate that these massive token burns from Binance and many other entities would positively impact the price of LUNC. As reported, a machine learning algorithm predicted the price of the asset for March 31.
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