Terra Classic (LUNC) Total Burns Finally Cross 50B Tokens

The total amount of tokens burnt so far represents 0.72% of the total Terra Classic supply.

The Terra Classic (LUNC) community has finally crossed the 50 billion token burn threshold. Though this amount represents only a fraction of Terra Classic’s supply, it underscores the community’s efforts toward rejuvenating the asset.

Total burns recently hit 50.11 billion tokens following a series of burns carried out within the past week. As of last Wednesday, total burns sat at 49.7 billion tokens; this means the community has incinerated 410 million tokens in the past week.

Being the largest single burner, Binance accounts for 28.95 billion tokens, about 57% of the total incinerated 50.11 billion. Recall that the exchange burned a whopping 8.8 billion LUNC in a single transaction earlier this month.

Centralized exchange MEXC comes fourth on the list, with 1.017 billion tokens burned so far. Validator LUNC DAO has burnt 450 million, securing fifth position, while Allnodes is sixth with 344 million tokens. Cremation Coin, a newly-launched project, is seventh, incinerating 265 million LUNC.

Despite efforts put into supporting the burning campaign, some members of the Terra Classic community have bemoaned the low rate of burns, noting that the current burn rate will barely make a dent in the asset’s extensive supply.

Data from TerRarity suggests that the total tokens burnt represent 0.729% of the asset’s total supply of 6.8 trillion LUNC. The burn rate currently sits at 198.1 million LUNC a day. At this rate, about 401 billion Terra Classic will be burned in the next five years, representing 5.837% of the total supply.

The Importance of Staking and Utility

Recall that a proposal was introduced over a week ago with the intention to increase the tax burn rate from 0.2% to 0.8%. The community rejected the proposal. TerraCVita member Rex Harrison noted that the rejection sends the message that the community prioritizes utility over burns, as an increase in tax burn could impact the trade volume of projects on the network.

Rex has always underlined the importance of utility and staking in supporting Terra Classic’s resurgence, shifting the attention from burns. In January, he asserted that staking and utility are the best avenues for LUNC to soar by 100x. As of press time, LUNC is trading for $0.0001275, flat in the past 24 hours.

Meanwhile, the LUNC staking initiative has also seen a massive uptick recently, with 952 billion tokens staked so far, representing 13.88% of the total supply. At this rate, the community needs 48 billion more tokens to hit the 1 trillion thresholds.