The cryptocurrency exchange Binance has decided to burn all fees charged on the platform’s LUNC/BUSD and LUNC/USDT spot and margin pairs.
» Binance To Implement Terra Classic (LUNC) Burn Mechanism
Quick thread on what we’re doing and why below.https://t.co/b86RlCGPmv
— CZ 🔶 Binance (@cz_binance) September 26, 2022
Trading fees will be redirected toward conversion into Terra Classic (LUNC) with assets subsequently sent to the burn address.
The size of the first batch will be calculated from September 21 at 00:00 (UTC) to October 1 at 23:59:59 (UTC).
The exact number of coins subject to burning, their US dollar equivalent value, and the network transaction ID will be updated weekly until further notice.
The initiative is aimed at reducing the LUNC supply.
The platform is prepared to do this at the expense of its commercial interests to support Terra’s ecosystem users, the exchange’s representatives explained.
LUNC’s price jumped 36.8% on the news. Over the last 30 days the asset has risen 2.5x.
On September 25, Binance made a decision to introduce the transaction tax on LUNC operations.
Back on August 26, 2022, Terra Classic activated the v22 update, which embedded a 1.2% transaction tax into the blockchain. The cryptocurrency obtained through these fees is withdrawn from circulation, exerting deflationary pressure on LUNC’s supply.
In May, Binance CEO Changpeng Zhao disclosed that the platform is one of the largest investors in Terraform Labs.
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