Binance’s latest LUNC token burn of 1.7 billion has significantly reduced the supply of Terra Classic, consistent with the increase in trading volume. Binance has completed another significant LUNC (Luna Classic) burn, set to commence in July. As emphasized by the charts recently released by community figure Rexyz, the burn event led to a substantial decrease in the total supply of LUNC.
@binance has completed another epic $LUNC burn, starting in July. As trading volume increases, so will the burning. Many thanks to @cz_binance and @_RichardTeng for supporting all those who burn for you. Together we are stronger. ❤️ @_Terraport_ @TerraCasino_io pic.twitter.com/Xn4xFMsCYf – Rexyz (@RexYellerBelly) July 2, 2024
The burn activity has garnered appreciation from Binance founder and former CEO Zhao and current CEO Richard Teng. The first image released by Rexyz shows the total supply of LUNC within 4 hours. The supply was 6,781,807,335,479 LUNC, with the latest candle showing a significant reduction of 1,726,507,904 LUNC.
This sharp decline in a short period indicates a significant burn event, possibly involving a large transaction or a series of transactions reducing the total supply.
Long-term Supply Trend
The second image provides a broader view, covering the LUNC supply from March to June 2024. The total supply was 6,781,738,369,201 LUNC, with a recent weekly reduction of 1,799,065,981 LUNC.
On-chain data confirms that the most recent burn occurred on July 1st at UTC 10:20, involving 1,701,046,397 (1.701 billion) LUNC.
LUNC July 2024 Burn
The charts provided by Rexyz show a continuous decline in supply over the months, with a more pronounced drop at the end of the period. This aligns with the recent burn event at the beginning of July, reflecting Binance’s efforts to reduce LUNC supply through increased trading activity.
Community Efforts and Additional Burns
In addition to Binance’s burns, the Terra Luna Classic community has been actively reducing the supply of LUNC. Since June, community developers have proposed faster methods to reduce supply due to the local LUNC coin facing challenges from cryptocurrency bears.
Over 12 billion LUNC and 68 million USTC have been excluded from circulation in the following contracts: – Anchor bLuna Rewards: terra17yap3mhph35pcwvhza38c2lkj7gzywzy05h7l0 – Lido Rewards Dispatcher: terra1q9cs4d4x67u6yvsawecf0usp2rygdnmrflzfj These funds have been locked since the 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 in specific contracts. These contracts include Anchor bLuna Rewards and Lido Rewards Dispatcher, with funds having been locked since the Lido DAO proposal passed in June 2022.
Previously, the community voted on Proposal 12098, aimed at reviewing the LUNC burn tax to fund the Oracle pool. Initially proposed by StrathCole, it sought to modify the distribution of the burn tax. It suggested allocating 80% for burning, 10% for the community pool, and 10% for the Oracle pool, ensuring block rewards only included gas fees.
