Binance Burns 5.5 Billion Terra Classic In Its First Ever LUNC Burn

Binance Burns 5.5B LUNC At Once.

Binance keeps its promise to the Terra community as it burns 5.5B terra classic (LUNC) tokens instantly.

Binance, the world’s largest exchange by trade volume, keeps to its decision to burn fees collected from LUNC spot and margin trades. Binance’s decision to effect the off-chain burn mechanism came amidst the community’s seemingly incessant agitation.

Due to its decision, Binance just Burns 5.5 billion Terra Classic tokens worth approximately $1.8M. The development was disclosed by a Twitter handle dedicated to tracking LUNC burn transactions.

“Burn alert! 5,595,907,838 LUNC ($1,899,923) burned to Luna Burn Wallet,” the handle noted, sharing a link to the transaction on the blockchain.

? Burn alert! 5,595,907,838 #LUNC ($1,899,923) burned to Luna Burn Wallet! https://t.co/R5MZrDmz4a #LunaBurn #BurnLuna

— LunaBurnTracker (@LunaBurnTracker) October 3, 2022

Since the identity of the entity behind the burn was not explicitly stated, the general consensus is that Binance initiated it due to the sheer nature of the transaction. Additionally, the burn coincides with when Binance noted that it would be burning all its LUNC trading fees.

Furthermore, a crypto pundit dedicated to updating the community on developments surrounding LUNC asserted that the transaction was from Binance.

“BREAKING NEWS : 5.5 BILLION LUNC has just been burned, We strongly believe this is the Binance   burn.“ he noted.

BREAKING NEWS : 5.5 BILLION $LUNC has just been burned ????

We have a strong belief this is the #Binance burn.

Retweet to spread the word! pic.twitter.com/TNBM7ddMK4

— Classy ? (@ClassyCrypto_) October 3, 2022

LUNC DAO writes:

Binance just burned ~6 BILLION $LUNC in one go. That’s about $2M dollars. Amazing

And this was a low volume week relative to the last few months. They’ll be burning all fees every week. More volume = more burned

TX: https://t.co/1yLciRH7Pb

RT to thank Binance for their help ?

— ?? ??ℕℂ ??? ?? (@LUNCDAO) October 3, 2022

Binance Confirmation:

After the community learned about the Terra classic burn, Binance officially confirmed that they had Burned 5.5B LUNC.

#Binance completes the first $LUNC burn, burning all trading fees collected from LUNC spot and margin trading pairs.

For more details about the first burn and all future burns, please check the announcement linked below for weekly updates moving forward.https://t.co/Depz9nYDVO

— Binance (@binance) October 3, 2022

Critics:

Despite Binance’s commitment to ensuring it keeps to its promise, complaints have already surfaced. Some Terra proponents are not particularly satisfied with the amount of LUNC Binance burning in a week.

A particular pseudonymous crypto trader and the engineer took to Twitter to analyze the burn rate. According to him, Binance’s weekly burn rate is not quite encouraging, as it represents only 0.09% of LUNC’s current market capitalization.

“The binance burn the LUNC community was waiting for just happened. One week’s worth of fees collected by Binance burned. The value? A meager $1.8m, 0.09% of market cap,” Tree of Alpha remarked.

The @binance burn the $LUNC community was waiting for just happened.
One week's worth of fees collected by Binance burned.

The value? A meager $1.8m, 0.09% of market cap.https://t.co/azUst9kMj5

— Tree of Alpha (@Tree_of_Alpha) October 3, 2022

Fatman wrote:

“At the behest of the “LUNC army,” Binance just threw $1.8 million dollars into the burn address. This will have a 0.09% impact on supply reduction. Just think of how absurd this is. With that money, you could hire a dev team to build a suite of useful products/tools instead…”

The transaction represents the first batch of LUNC burn Binance is carrying out since it agreed to implement the off-chain tax burn by using trading fees.

As previously reported by The Crypto Basic, recall that Binance succumbed to the Terra community’s demands for the LUNC off-chain burns. The exchange disclosed its decision to burn trading fees from LUNC spot and margin trades in an official announcement on September 26.

According to the announcement, Binance will burn all fees gotten from LUNC spot and margin trades from the previous week on Monday at midnight (UTC) every week. The exchange also promised to update the community on the amount burned each week. Weekly burns official updates from Binance will come on Tuesday every week.