Terra Classic: Binance completes first week of burning LUNC fees with disappointing results
Cryptocurrency exchange Binance has completed its pledge to burn all Terra Classic (LUNC) fees, but has not made much of an impact.
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As reported by FoxCryptoNews, last week, cryptocurrency exchange Binance went against the previous statement of CEO Changpeng Zhao and announced that it will burn all Terra Classic (LUNC) trading fees that the platform should have. this will receive. The above decision is considered a "high-handed" move by Binance in appeasing both the LUNC community, exchange users and large institutions trading on Binance.
Accordingly, the Terra Classic community in September approved a proposal to burn 1.2% of the value of each LUNC transaction in an effort to reduce the supply of more than 6.7 trillion LUNC that was created during the crash of LUNA-UST in May – also known as the “LUNC burning tax”. The Terra Classic community then asked exchanges, including Binance, to apply the change to their exchanges.
However, the difficulty of CEO Changpeng Zhao is that if such a tax is applied, Binance users and institutions will lose money because the transaction value is gradually eroded, causing both users and trading volume to flow. to other platforms without burning LUNC. This is not good for Binance's business, and through that, the CEO has suggested a different direction, requiring Binance users to show support for the LUNC burning tax in order to apply it on a large scale. than.
However, in the face of mixed reactions from the LUNC community, who called Mr. Zhao a "break of promise" because he had previously claimed to support the LUNC burning tax, Binance finally gave in. Instead of burning users' LUNCs, the world's largest cryptocurrency exchange will burn the trading fees they receive from LUNC spot and margin pairs. Coin burn data will be published every Monday.
By the evening of October 3, Binance announced the results of the first LUNC burn. Accordingly, in the last 7 days, the amount of fees that the exchange received from LUNC trading activities was 1.8 million USD , accounting for only 0.08% of the total supply. This number is many times lower than the impact many in the LUNC community had expected to be able to reap, as well as showing that LUNC trading activity on Binance has not exploded as expected.
It is estimated that with the current rate of Binance coin burning, it will take up to 15 years for Terra Classic to complete its goal of bringing the total supply of LUNC from 6.7 trillion LUNC to only 10 billion.
The LUNC price also somewhat reacted negatively to the disappointing burn results from Binance, down more than 7% compared to 24 hours ago. Even so, this coin is still higher than the bottom of last Monday (September 26), when LUNC "set up a column" when Binance confirmed it would burn transaction fees to appease the community.
Oct 04, 2022