Binance Torches 1B LUNC Amid Key USTC Burn Proposal Approval

Binance burns 1B of LUNC in the monthly burning batch. Is USTC up next in the crypto cremation chamber?

Fire raging with black smoke. The fire side is represented by the face of CZ, the smoke side represented by Do Kwon.
Created by Gabor Kovacs from DailyCoin
  • LUNC posts slight monthly gains as several key proposals activate.
  • Terra Classic community suspended $USTC minting, seeking burns.
  • Binance now accounts for over 38 billion destroyed Terra Classic.

The latest cryptocurrency burning ceremony by the globally leading crypto exchange Binance takes over 1 billion Terra Luna Classic (LUNC) tokens out of circulation. Binance has been known to be a top contributor to Terra Classic’s ongoing revitalization crusade.

However, the vast majority of Terra Classic members have also voted for the crypto behemoth to start doing the same with $USTC. Terra Classic fans anticipate a breakthrough, following a successful vote to suspend the minting & re-minting of $USTC.

LUNC Community Looking For Ways To Increase Fire

In the recently passed proposal #11785, community members almost unanimously voted in favor of requesting Binance to burn 50% of trading fees accumulated from $USTC trades – the same burn method that’s used to destroy sister token Terra Luna Classic (LUNC) in monthly batches.

Ultimately, this could boost the market price of the malfunctioning $USTC with the end goal of proposal #11785 aiming to re-peg $USTC back to $1 USD. The original peg was lost last year, when $LUNA & $UST crumbled to pieces in a matter of days, leaving crypto investors appalled.

While the 2022 Terra Luna fiasco is being looked into by the U.S. Securities and Exchange Commission (SEC), South Korean Special Task Force & Singapore authorities, the community took it upon themselves to revitalize the embattled blockchain. Besides Binance accounting for 55% burns at the moment, prominent Terra Classic on-chain validators are also making an effort to reduce the supply of both tokens.

To illustrate, the veteran Terra chain validator SolidVote declared that they would start burning $USTC tomorrow, a day after the $USTC burning proposal was officially approved. Previously, the community also set fire to 800 million $USTC tokens, which were allocated to the Ozone Protocol by the notorious TerraForm Labs co-founder Do Kwon.

On the Flipside

  • While $USTC minting is now suspended, Terra Classic members have previously suggested a hard cap on $LUNC.
  • However, the Terra Classic community is divided into two camps, claiming that putting $LUNC on a max supply is programmatically hard to deliver.

Why This Matters

Terra Classic chain is still used by a vast & active community, which continues to make decisions in a democratic way via governance proposals.

Read DailyCoin’s top crypto news:
Bitcoin Uptober Excitement Peaks With $28K Surge: What’s Next?
Friend.tech’s Revenue Skyrockets Against Rising Criticism

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.