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Binance Reduces LUNC Burn by 50%

Binance, the largest cryptocurrency exchange by trading volume, has announced a reduction in the voluntary burn mechanism of Terra Luna Classic (LUNC) trading fees.

LUNC Logo on charts
LUNC Logo on charts

Beginning December 28th, Binance will burn 50% of all LUNC spot and margin trading fees, down from the previous 100%.

LUNC Burn Delay and Re-minting

In addition to the reduction in burning, Binance has also delayed the next batch of LUNC burns to March 1st, 2023. This delay is in response to Terra Classic proposals 10983 and 11111, and Binance will create a new burn wallet to prevent the re-minting of LUNC tokens. The exchange is also looking to have its LUNC wallet whitelisted to prevent taxes when transferring between these wallets. However, Binance may stop LUNC burning entirely if the necessary changes are not made.

LUNC Price Plummets After Changes Announced

The announcement from Binance follows a recent rally in LUNC, with the price rising nearly 50% in the last few days due to a breakout above a three-month descending channel. In response to the changes to the burn mechanism, the price of LUNC has plummeted by 13% in the last 24 hours, currently trading at $0.0001606.