Binance has decided to burn all fees on LUNC spot and margin trading pairs. This has in turn led to a price increase in the LUNC token.
Binance announced this via a blog post on its official website. According to Binance, it would update the amount of LUNC to be burned, its USDT equivalent, and on-chain transaction ID weekly. In addition, the blog announcement outlined rules that would guide the burn mechanism.
Binance would calculate the total trading fees on LUNC spot and margin trading pairs to be burned from the previous week every Monday at 00:00:00 UTC. Successive on-chain burn transactions and reports would get updated on Tuesdays at 00:00:00 UTC.
The first batch of burning trading fees would be calculated from September 21 at 00:00:00 UTC to October 1 at 23:59:59 UTC. This would exclude rebates on LUNC spot and margin trading pairs for Binance Spot Liquidity Provider Program from September 21 to 27, 2021.
Additionally, Binance would convert other tokens’ trading fees to LUNC on Mondays. The CEO of Binance, Changpeng Zhao, stated that Binance would not push burn costs on users. The Terra Classic burn would not affect BNB fee discounts, rebates, or other accruing fee adjustments.
The CZ further explained they intend to maintain the same trading experience and liquidity while ensuring the supply decrease of LUNC.
The tremendous support of Binance to the Terra community produced a positive result in LUNC price. After the announcement, LUNC’s price increased by more than 70%. As of this writing, the price of LUNC is $0.000276 with a 24-hour trading volume of $1,284,298,812. It is ranked 35th among thousands of cryptocurrencies by CoinMarketCap.