The total volume of Terra Classic tokens burned by the community has touched a record high as many contributors took millions of LUNC out of supply in the past weeks. While the overall LUNC burned recently crossed 50 billion, the community is still far from its target.
Data extracted from the popular LUNC burn tracker TerraRity showed that 50,122,048,197 LUNC have been taken out of supply forever at press time. That is, approximately 0.72% of the asset’s total supply of been burned as of March 23.
This development comes after Binance recently resumed its suspended LUNC burn contributions and amid the community’s rejection of a newly-introduced proposal to hike the burn rate from the current 0.2% to 0.8%.
LUNC Burn Expedition
It can be recalled that the de-pegging of TerraClassicUSD (USTC), formerly called TerraUSD (UST) in May 2022 led to an unusual minting of its sister token, LUNC, into the market. The excessive minting of LUNC back then was in a bid to help USTC maintain its parity with a dollar ($1). But it failed to suffice as the supposed stablecoin’s value plummeted to zero and is yet to recover at the time of writing.
Particularly, the total supply of Terra Classic rose dramatically to 6.9 billion. The crypto project community has since embarked on a burning mission to reduce the hyperinflated supply of LUNC to 10 billion tokens. To achieve this, several means have been deployed by the community.
Beginning with volunteer LUNC burns from several individuals and entities, the community-driven project subsequently introduced a 1.2% tax burn on all on-chain transactions on the Terra Classic network.
While many crypto exchanges including MEXC Global, OKX and KuCoin quickly implemented the 1.2% LUNC tax burn, Binance delayed to implement the 1.2% tax burn initiative. According to Binance CEO Changpeng Zhao, a high tax signifies greed, and forcing a tax on users damages the whole decentralization idea. This led to the subsequent reduction of the tax burn to 0.2%.
Notably, the largest cryptocurrency exchange by trading volume opted to voluntarily convert the trading fees obtained from LUNC spot and margin trading on its platform to LUNC and burn them. At the start, Binance burned 100% of the trading fees but last December, the exchange announced a 50% reduction in its LUNC burn contributions following a short-lived agenda of re-minting burned LUNC to fund the community pool.
Regardless, Binance remains the top contributor to the LUNC burn expedition with 28,953,648,926 Terra Classic tokens sent to the dead wallet at the time of writing. Burn Tax comes next on the top burner list with 15,738,599,734 LUNC burned so far. While Lunatics Token and MEXC CEX ranks third and fourth respectively, according to available information on LUNCDASH.
Although the LUNC burn mission seems to be going smoothly, Rex Harrison, a senior member of TerraCVita, and Edward Kim, a notable member of the LUNC development team have recently noted that building solid utility and use cases for LUNC as well as token staking are the best ways to revitalize the once-broken chain. In this wise, a Terra Classic layer-2 decentralized finance project Terraport is set to be launched by March ending and it promises to burn billions of LUNC weekly.
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