Terra Classic community has successfully executed the burning of over 700 million LUNC and 230,000 USTC tokens. This move forms a part of the broader strategy to restore the Terra Classic (LUNC) and TerraUSD Classic (USTC) after their notable collapse over 20 months ago.
Ongoing efforts in reviving LUNC
The Terra Classic community remains steadfast in its efforts to rejuvenate the ecosystem. A key strategy in this endeavor is the systematic burning of the LUNC and USTC supply. This method addresses the bloated supply issue, a significant factor in the ecosystem’s downfall. Recently, the network achieved a milestone by burning over 700 million LUNC, valued at approximately $70,840, and 230,000 USTC, worth around $6,187. These figures were reported by Alex Crypto Bull, citing data from StakeBin.
While the amount burned might seem modest in the context of Terra Classic’s vast supply, the community is confident about the long-term positive impact of these actions. The burning mechanism is linked to network activity, implying that the number of tokens burned will increase during heightened user engagement.
Binance’s role and market impact
Binance, a leading cryptocurrency exchange, has played a pivotal role in supporting the Terra Classic community. The exchange has been actively involved in the burning campaign, using trading fees on its platform to burn Terra Classic tokens. Earlier this month, Binance completed its latest burning program, destroying 5.5 billion Terra Classic coins, which, at current prices, are valued at over $550,000. This contribution places Binance at the forefront of the Terra Classic burning initiative, accounting for over 52% of the total burned assets.
Despite these efforts, the short-term market response has been mixed. After an initial surge, both LUNC and USTC have experienced price declines. In December, LUNC reached a trading high of $0.00025, and USTC peaked at $0.069. However, both assets have since faced a downturn, with LUNC currently trading at $0.000102 and USTC at $0.025. These price movements are attributed to a combination of profit-taking activities and a broader correction in the crypto market.