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The latest LUNC burn of 1.7 billion tokens from Binance significantly reduces the Terra Classic supply, aligning with increased trading volume.
Binance has completed another significant LUNC (Luna Classic) burn to start in July. The burn event led to a substantial decrease in the total LUNC supply, as highlighted by recent charts posted by community figure Rexyz.
@binance completes another epic $LUNC burn to start July. As trading volume increases so do burns.
Massive thanks to @cz_binance and @_RichardTengSupport all those burning for you. Together we are stronger. ❤️@_Terraport_ @TerraCasino_io pic.twitter.com/Xn4xFMsCYf
— Rexyz (@RexYellerBelly) July 2, 2024
The burn activity has garnered appreciation towards Binance founder and former CEO Changpeng Zhao, as well as current CEO Richard Teng.
The first image posted by Rexyz showcases the total LUNC supply over a 4-hour period. The supply stood at 6,781,807,335,479 LUNC, with a notable decrease of 1,726,507,904 LUNC in the latest candlestick.
This sharp drop within a short time frame indicates a significant burn event, likely involving a large transaction or a series of transactions that reduced the total supply.
Long-Term Supply Trend
The second image presents a broader view, covering the LUNC supply from March 2024 to June 2024. The total supply was recorded at 6,781,738,369,201 LUNC, with a decrease of 1,799,065,981 LUNC in the latest week.
On-chain data confirms that the latest burn, which involved exactly 1,701,046,397 (1.701 billion) LUNC, occurred on July 1 at 10:20 UTC.
The chart provided by Rexyz reveals a consistent decrease in supply over several months, with more pronounced drops towards the end of the period. This aligns with the recent burn event at the start of July, reflecting Binance’s ongoing efforts to reduce the LUNC supply through increased trading activity.
Community Efforts and Additional Burns
In addition to Binance’s burns, the Terra Luna Classic community has been proactive in reducing the LUNC supply. As the native LUNC coin faced challenges from the crypto bears since June, community developers proposed faster ways to decrease supply.
Over 12B $LUNC and 68M $USTC have been excluded from circulation from the following contracts:
– Anchor bLuna Rewards: terra17yap3mhph35pcwvhza38c2lkj7gzywzy05h7l0
– Lido Rewards Dispatcher: terra1q9cs4d4x67u6yvsaswecf0usp2rygdnmrflzfj
These funds are locked since Lido DAO…
— Terra Classic Foundation (@TCF_Terra) June 29, 2024
The Terra Classic Foundation recently announced the exclusion of over 12 billion LUNC and 68 million USTC from circulation through specific contracts. These contracts include Anchor bLuna Rewards and Lido Rewards Dispatcher, with funds locked since a Lido DAO proposal passed in June 2022.
Previously, the community voted on Proposal 12098, which aims to review the LUNC burn tax to fund the Oracle pool.
This proposal, initially suggested by StrathCole, seeks to modify the burn tax distribution. It proposed allocating 80% towards burning, 10% to the Community Pool, and 10% to the Oracle Pool, ensuring block rewards consist solely of gas fees.