Binance’s latest LUNC burn of 1.7 billion tokens has significantly reduced the supply of Terra Classic, in line with the increase in trading volume.
Binance has completed another important LUNC (Luna Classic) burn, set to begin in July. As highlighted in a recent chart released by community figure Rexyz, the burn event has led to a significant decrease in the total supply of LUNC.
@Binance has completed another epic $LUNC burn set to begin in July. The burn will increase alongside the trading volume. Many thanks to @cz_binance and @_RichardTeng for supporting everyone burning for you. Together, we are stronger. ❤️ @_Terraport_ @TerraCasino_io pic.twitter.com/Xn4xFMsCYf -Rexyz (@RexYellerBelly) July 2, 2024
The burn activity has garnered praise from Binance founder and former CEO Zhao and current CEO Richard Teng.
The first image posted by Rexyz shows the total supply of LUNC within a 4-hour timeframe. The supply is 6,781,807,335,479 LUNC, with a significant decrease of 1,726,507,904 LUNC in the latest candle.
This sharp decline in a short period indicates a major burn event, potentially 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 supply of LUNC from March 2024 to June 2024. The total supply is 6,781,738,369,201 LUNC, with a recent decrease of 1,799,065,981 LUNC in the past week.
On-chain data confirms that the most recent burn occurred on July 1st at 10:20 UTC, involving 1,701,046,397 (1.7 billion) LUNC.
LUNC burn in July 2024
The charts provided by Rexyz show a continuous decline in supply over the past few months, with a more pronounced decline towards the end. This aligns with the recent burn event in early 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, developers in the community have proposed faster methods to decrease the supply as local LUNC coins face challenges from cryptocurrency bears.
Over 12 billion LUNC and 68 million USTC have been excluded from circulation from the following contracts:
– Anchor bLuna Rewards: terra17yap3mhph35pcwvhza38c2lkj7gzywzy05h7l0
– Lido Rewards Dispatcher: terra1q9cs4d4x67u6yvsawecf0usp2rygdnmrflzfj
These funds have been locked since the Lido DAO proposal passed in June 2022… –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, and the funds have been locked since the Lido DAO proposal passed in June 2022.
Previously, the community voted on Proposal 12098, which aimed to review the LUNC burn tax to fund the Oracle pool.
This proposal, initially brought forth by StrathCole, aimed to modify the allocation 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 include gas fees.