Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Binance announced that it has burned 5.5 billion Luna Classic tokens following its implementation of the burn mechanism.
For more details about the first burn and all future burns, please check the announcement linked below for weekly updates moving forward.https://t.co/Depz9nYDVO
— Binance (@binance) October 3, 2022
According to the announcement by the firm, it burned all the trading fees for LUNC spot and margin trading pairs. The burn program began on Sept. 21.
The burnt 5.5 billion LUNC tokens represent the fees the exchange got between Sept. 21 to Oct. 1.
Binance was previously reluctant about the implementation of the 1.2% burn tax mechanism, saying it was going to add an opt-in button for users. However, the community’s negative reaction to the idea forced the exchange to cancel the plan.
LUNC community confirms Binance burn
A Twitter account tracking Luna Burn confirmed that Binance has sent the tokens to the LUNC burn address. At the current price, it means that almost $1.9 million worth of LUNC was burned.
— LunaBurnTracker (@LunaBurnTracker) October 3, 2022
The LUNC DAO also confirmed the development, adding that “this was a low volume week relative to the last few months. They’ll be burning all fees every week. More volume = more burned.”
Community divided on the effect of Binance burn
While many are excited about the burn, others believe it would take a while before enough tokens would be burnt to reduce LUNC’s total supply of almost 7 trillion.
A Twitter user pointed out that it will take 15 years to reduce the supply to 10 billion at this rate.
At this rate, we'll get to 10 billion in 15 years. I'm patient and I'm definitely not going to sell, but honestly…anything over 8 years doesn't make sense to me.
— Milan Jansa (@MilanJansa) October 3, 2022
FatMan Terra described the burn idea as “absurd,” saying a developer team could have been hired “to build a suite of useful products/tools instead.”
At the behest of the "LUNC army", Binance just threw $1.8 million dollars into the burn address. This will have a 0.09% impact on supply reduction.
Just think of how absurd this is. With that money, you could hire a dev team to build a suite of useful products/tools instead… https://t.co/3wnrzbdGum
— FatMan (@FatManTerra) October 3, 2022
Meanwhile, the burn is yet to affect LUNC’s price performance. The digital asset has shed roughly 5.6% of its value over the last 24 hours.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.