On Monday (October 3), CZ, Co-Founder and CEO of Binance, announced the amount of $LUNC Trading Fees that had been burned in batch 1, which was for the period September 21 to October 1 (inclusive).
As Binance Research explained in an article published on 31 May 2022, Terra Classic, which was rebranded from Terra, is “a public blockchain based on Tendermint” and “home to the algorithmic stablecoin TerraClassicUSD (USTC).”
After the original algorithmic stablecoin $UST de-pegged from USD in May 2022, “the community behind Terra Classic decided to create a new blockchain without the algorithmic stablecoins called Terra 2.0” and “new LUNA tokens were airdropped to the old users that were affected by the depeg event.”
$LUNC is the native token of Terra Classic, and it is used for staking, governance, and paying fees.
On September 21, Binance published a blog post to announce that it was going to “implement Terra Classic (LUNC) burn mechanism on trading fees”.
It then went on to explain the reason for choosing to burn $LUNC trading fees:
“In response to the LUNC community proposal on burning trading fees while maintaining a good trading experience for users, Binance will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address. The specific amount of LUNC to be burned, its equivalent value in USDT, and on-chain transaction ID will be updated each week in this announcement until further notice.“
Well, this blog post was updated earlier today (October 3) to show the latest burn record, which stated that as of end of day (UTC time) October 1 Binance had burned around 5.6 billion $LUNC tokens (worth over $1.8 million):
Image Credit
Featured Image via Pixabay
