Binance continues LUNC burn initiative, giving up trading fees.
In a tweet by LUNC DAO, a Terra Luna Classic (LUNC) community validator moments ago, the validator disclosed that world-leading exchange Binance had sent nearly 3 billion LUNC worth about $1 million to the Terra burn wallet as part of its burn initiative to support the network.
$3B BURN BY BINANCEhttps://t.co/01JSIzTWEP
I still think this is INCREDIBLE that it’s happening. It’s the only time Binance has ever done anything like this. They just sent $1M dollars to the burn wallet
Their burns and social media support helps the $LUNC community massively
— 🕊🔥𝕃𝕌ℕℂ 𝔻𝔸𝕆🔥🕊 (@LUNCDAO) October 10, 2022
Notably, the transaction had first been flagged by LunaBurnTracker, a Twitter account dedicated to tracking LUNC burns.
— LunaBurnTracker (@LunaBurnTracker) October 10, 2022
It bears mentioning that Binance is yet to update this transaction on the blog post dedicated to tracking the burn event. However, it should be updated on or before 00:00 UTC on Tuesday.
As reported by The Crypto Basic on September 26, Binance disclosed that it would be burning all fees obtained from LUNC trading activity in response to demands from the LUNC community that a 1.2% tax be implemented on off-chain transactions. It is believed that the initiative will be discontinued after 4-weeks should other exchanges not follow suit.
Notably, about 5.5 billion LUNC was burnt in the first round of trading fee burns. Today’s burn puts the total burn by Binance from trading fees at about 8.5 billion LUNC. It comes at a $2.8 million cost to the exchange.
Since the LUNC community introduced burns, about 17.9 billion LUNC have been burnt. Binance burns from trading fees now represent over 47% of that number. Meanwhile, the 1.2% burn tax on on-chain transactions has only burned about 5 billion LUNC, only about 28% of the total.