The collapse of Terra ecosystem’s two tokens was the beginning of turmoil for the cryptocurrency industry and the domino effect has continued to haunt the space. However, the rebranded token of the original Terra chain – Terra Classic (LUNC) – spiked by more than 36% over the past 24 hours. The unexpected retreat of the bulls follows a Binance’s announcement of implementing the LUNC burn mechanism on trading fees.


After scrapping initial plans to initiate a burn-in subscription, Binance announced new plans to implement a new mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address. As stated Binance CEO – Changpeng Zhao – the mechanism of a full burn-in tax will be fair to all users once a certain number of subscribers is reached.


Explaining the move, CZ tweeted; “The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.” In theory, restricting the circulating supply of their tokens would aid the price growth of the tokens as demand increases.


The news was met with a positive movement in LUNC’s price, which climbed up to $0.00032. The latest surge in the token even managed to overshadow the dump LUNC endured after Terraform Labs’ co-founder – Do Kwon – was served an Interpol red notice. LUNC previously suffered significant price declines although it never really achieved a dead coin status post-crash.


In an attempt to revive the failed blockchain token, a new tax burn regime was floated to reduce its hyperinflated supply and kickstart a rally. The Terra community approved the proposal which is intended to introduce a 1.2% tax rate on every transaction on the blockchain.


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