Binance, one of the biggest cryptocurrency exchanges in the world and holder of potentially the most LUNC liquidity, has just announced that it will burn all trading commissions it has accrued on LUNC spot and margin pairs against BUSD and USDT.
The two tokens that made up the Terra ecosystem collapsed, causing great turmoil for the crypto market that is still having repercussions today. The rebranded token of the original Terra chain, Terra Classic (LUNC), however, increased by more than 36% over the previous day.
Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance.
Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’.
— CZ ? Binance (@cz_binance) September 26, 2022
Binance disclosed plans to implement a mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address after abandoning the initial idea of starting a burn-in subscription.
Once a certain threshold of subscribers is reached, the mechanism of a full burn-in tax will be “fair” to all users, according to Binance CEO CZ. The executive tweeted to explain the decision:
“The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”
Theoretically, limiting the number of their tokens in circulation would encourage price growth as demand grows. As a result of the news, the price of LUNC increased to $0.00032. Even the decline LUNC experienced after Terraform Labs co-founder Do Kwon was issued a red notice by Interpol was overshadowed by the most recent surge in the token.
Although LUNC had previously experienced significant drops, it never truly attained “dead coin status” after the crash.
A new tax burn regime was floated to revive the failed blockchain token by reducing its inflated supply and igniting a rally. The proposal, which aims to impose a 1.2% tax rate on each blockchain transaction, was approved by the community.