Terra Classic Spikes 17% After Binance Burns Over 6B LUNC
By Benzinga
In the sixth burn batch of the Terra Classic (CRYPTO: LUNA) burn mechanism, Binance burned over 6 billion LUNC on Thursday, driving LUNC up more than 17% in the last 24 hours.
What Happened: Binance burned $1 million worth LUNC tokens by sending them to a dead address. The transaction indicated a fee of 12.77 million LUNC. With this latest burn, Binance has incinerated almost 20 billion LUNC tokens till data.
Burn alert! 6,389,199,628 #LUNC ($1,038,309) burned to Luna Burn Wallet! https://t.co/Z6PZLanME4 #LunaBurn #BurnLuna
— LunaBurnTracker (@LunaBurnTracker) December 1, 2022
Tokens are permanently removed from circulation by transferring them to a burn address, a wallet from which they cannot ever be retrieved. A project reduces the overall supply of tokens by burning them down causing a deflationary event. Tokens decrease in value when their supply declines and they become more rare, which makes them appreciate in value.
At the time of writing, LUNC was trading at $0.0001905, according to Benzinga Pro.
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Binance burned over 5.5 billion LUNC tokens in the first batch and 1.26 billion tokens in the fifth batch on Oct. 31.
The Terra Classic community is voting on important issues that affect the chain's functionality. Developers from the Terra Classic chain will implement the v23 upgrade, which includes the CosmWasm upgrade.
