In a show of support for the Terra Classic ecosystem, Binance, the world’s leading crypto exchange, has executed the 11th burn of Terra Classic (LUNC) tokens. Despite ongoing internal disputes within the Terra Classic community, Binance transferred a staggering 2.65 billion LUNC tokens on July 1 to a burn address. The tokens, valued at $236.6K at the time of the transaction, represented 50% of LUNC spot and margin trading fees accumulated from May 31 to June 29.
Tokens on the Terra Classic network are automatically burned via the burn mechanism whenever a transaction takes place. Per the mechanism, the amount of tokens burnt is proportional to the total supply in circulation. This assures that the overall token supply is always dropping, which in theory, is expected to increase the token’s value over time.
The recent burn has raised Binance’s total contribution to the cumulative Terra Classic burn to over 35.53 billion tokens, more than 54% of the 65.3 billion LUNC tokens burned in total by all parties. Since resuming its LUNC burns in February 2023, after a suspension period from December 2022, Binance has conducted five such operations, eliminating 15.1 billion LUNC from circulation in total.
The burn event follows a series of contentious debates within the Terra Classic community. Notably, the aftermath of the Terraport attack, which resulted in the loss of billions of LUNC in user funds, has led to a fracture in the community, with some members supporting the development group TerraCVita’s efforts to relaunch Terraport and others voicing their opposition.
Furthermore, disagreements have also arisen around the formation of a USTC team proposed by Redline Drifter, with some validators strongly opposing the idea. Pseudonymous LUNC developers Bilbo Baggins and Solid Snake’s proposal to form a parallel engineering team, the “Six Samurai,” also faced mixed responses from the community.
Despite the ongoing disputes and the internal turmoil, the community has expressed gratitude towards Binance and its CEO, Changpeng Zhao, for their continued support. Meanwhile, the price of LUNC experienced a modest uptick of 3% over the 24 hours following the burn, trading at $0.000087, despite showing a downward trend in June. The price remained unchanged at the time of writing.
