Approximately 68.3 billion LUNC tokens have been burned so far, accounting for approximately 0.99% of the total token supply.
Of this burned amount, 44.8 billion LUNC tokens have recently been sent to the burning address.
Restore the digital currency’s reputation
Luna Classic HQ has announced that 68,303,850,914 tokens were burnt, representing 0.99% of the total supply, and of this amount, 44,789,088,501 has been sent to the burning address.
The update comes as part of the decision to burn all Terra Classic tokens from the community pool and the tokens that were reminted via Binance’s LUNC burn wallet. The main goal of the decision is to burn enough Terra Classic tokens to restore the digital currency’s reputation after it became disconnected from its linked algorithmic stablecoin USTC.
Binance has actively taken part in the burn campaign. As part of the 11th batch of the LUNC burn mechanism, Binance made a contribution by sending 2.65 billion Terra Classic tokens to an inactive wallet.
Traditionally, burning tokens is a popular strategy to reduce a token’s available supply. This is usually done to build market demand and to potentially increase the token’s value. The Shiba Inu (SHIB) protocol is one instance of a cryptocurrency project that frequently burns extra tokens. For example, yesterday, July 10, SHIB reported 3,808% growth with a burn rate total of 508,958,446 SHIB pushing the price to $0.00000757. This move was following another burn on June 30 that resulted in SHIB’s burn rate spiking 1,800% when another 50.258,924 SHIB were locked.
The crypto community seems to believe that the burn will do little to trigger higher LUNC prices, with some, however believing that the movement is just one step towards achieving a $1 LUNC token. Although ambitions are high, at the time of writing, LUNC currently sits at 0.000083, an increase of 1.92% in the last 24 hours.
Not one but two developments
In line with this announcement potentially driving prices up, LUNC also submitted a governance proposal on June 25 to introduce liquid staking on the Quicksilver network.
Earlier in the month, Terra Luna Classic surpassed the 1 trillion mark for staked LUNC, with the staked supply ratio reaching more than 14%. This previous announcement had sent the price of LUNC up 3% to $0.000094 in late June.