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A Lifeline For Terra Classic As Binance Alone Can Burn Above 1 Trillion LUNC Per Year

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Binance throws the Terra Classic community a lifeline.

Here’s How Much Terra Classic (LUNC) Can Be Burned In A Year From Binance’s Implementation of Burns On Trading Fees.

Yesterday, leading crypto exchange Binance in a show of support for the Terra Classic (LUNC) community at a high cost to the exchange, disclosed that it would be burning all trading fees obtained from LUNC spot and margin trading activities in addition to the 1.2% tax on deposits and withdrawals.

So the question a lot of LUNC enthusiasts are wondering is how much can this burn from a 0.1% fee affect the LUNC supply in a year. As highlighted by Terra Rebel RexYellerBelly, about 1 trillion LUNC can be burnt yearly Binance alone, using this model and current daily trading volume information. Notably, at an average daily volume of $1 billion, Binance will burn about 1.2 trillion LUNC.

However, as pointed out by users in the comments, members of Binance’s VIP program, who are offered concessions because of the large volume they control, will only pay about 0.06% in fees. Factoring this into the calculation offers a range of 730 billion LUNC to 1.2 trillion LUNC burnt yearly at an average daily trading volume of $1 billion.

The total LUNC daily trading volume on Binance is $1.3 billion at press time.

Moreover, it bears mentioning that Binance’s model offers a reduced risk of reducing trader volumes, as it comes with no increased cost to traders, which would have been the case with a 1.2% tax implementation. Similarly, a tax will not discourage traders should the token’s price go up.

These are significant as Binance’s implementation gives the community a chance to hit its 10 billion supply target in about 6 years.

Notably, since Binance announced its LUNC trading fees burn initiative, the price of LUNC has surged significantly. LUNC is trading at the $0.0003059 price point, up by 65.59% in 24 hours. The Crypto Basic reported yesterday that Santiment expects this volatility to continue for a week.

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Mark Brennan
Mark Brennan
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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