The Long-Awaited Binance’s LUNC Burn Surfaced As Promised, As It Burns Over 5 Billion LUNC Tokens
The most-anticipated Binance’s LUNC burn has just landed after some days’ waiting. The largest crypto exchange fulfilled its promise with the burning of over 5 billion instantly.
Recall that the previously stated that it will be implementing the LUNC tax burn on the LUNC spot and margin trades.
Per LunaBurn Tracker; “Burn alert! 5,595,907,838 LUNC ($1,899,923) burned to Luna Burn Wallet,”
Although the identity of the entity behind the burn was not explicitly noted, the consensus is that Binance initiated it due to the pattern of the initiation. Furthermore, the burn coincides with when Binance noted that it would be burning all its LUNC trading fees.
On this premise, a crypto pundit, Classy, noted with confidence that the transaction was from Binance.
“BREAKING NEWS: 5.5 BILLION LUNC has just been burned, We strongly believe this is the Binance burn.“ he noted.
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Also LUNC DAO states;” Binance just burned ~6 BILLION $LUNC in one go. That’s about 2M dollars. Amazing And this was a low volume week relative to the last few months. They’ll be burning all fees every week. More volume = more burned”
Following the series of consciousness of the crypto community, Binance came out to assert the transaction to have been from them.
LUNC Community Were Not Pleased With Binance’s LUNC Burn
Despite the Binance’s effort to fulfil its promise toward LUNC tax burn, some of the Terra proponents are not particularly satisfied with the amount of LUNC Binance burning in a week. Among them is a particular pseudonymous crypto trader and the engineer took to Twitter to analyze the burn rate. According to him, Binance’s weekly burn rate is not quite encouraging, as it represents only 0.09% of LUNC’s current market capitalization.
“The binance burn the LUNC community was waiting for just happened. One week’s worth of fees collected by Binance burned. The value? A meagre $1.8m, 0.09% of market cap,” Tree of Alpha stated.
Per Fatman; “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…”
It is worth noting that the transaction represents the first batch of LUNC burn Binance is initiating since it conceded to implement the proposal on the off-chain using trading fees.
Recall that Binance announced that it will burn all fees gotten from LUNC spot and margin trades from the previous week on Monday at midnight (UTC) every week.
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