LUNA Classic (LUNC) has lost a significant portion of its value after the Terra network crash in May of this year. The token has been receiving tremendous help from various investors and firms to stabilize its coin. LUNC had a massive supply during the Terra network crash to trillions of tokens in circulation.
For the LUNC ecosystem to recover from such damage, there have been several initiatives that helped burn tokens in circulation. Binance, the largest crypto exchange has implemented a burning tax on all transactions to further burn LUNC tokens to cut supply.
Binance has implemented this tax burn for a month now, and it has been the most effective method of burning LUNC tokens. This crypto exchange has burned over billions of LUNC tokens with the latest burn being 1.3 billion LUNC tokens. While Binance has been the most effective method of burning LUNC tokens, there has been a decline in burning observed in the past few weeks.
The LUNC tax burn was applied on transactions, and now with trading volume reducing, the burning has also reduced. More than 24 billion LUNC tokens have been burnt which amounts to $5.5 million dollars at current pricing.
While the support from various firms and individuals has been overwhelming, the burn compared to the influx in the supply of LUNC due to the Terra crash is minuscule. Today, the Binance burn has shown only $300,000 worth of tokens burnt.
The on-chain tax burn of 1.2% is also being dropped down to 0.2% and exchanges have begun implementing this revised tax burn rate. Off-chain tax burn continues to have the previous tax burn rate. This means LUNC will see a lower burn rate from now on forth.
Additionally, the trading volume of the token has plunged by 50% in the last 24 hours. This makes it even more difficult to cut supplies.
