Binance, the world’s leading cryptocurrency exchange, has made significant adjustments to its Terra Luna Classic (LUNC) burn mechanism, further solidifying its position as the largest contributor to LUNC’s supply reduction.
With 64.47 billion LUNC tokens burned to date, Binance has played a key role in supporting the token’s chain and price revival efforts. The revised burn mechanism has sparked excitement within the LUNC community, signaling potential for future growth and price increases.
Binance’s LUNC Burn Mechanism
Binance’s relationship with Terra Luna Classic dates back to 2022 when the exchange announced plans to burn LUNC trading fees. Originally, Binance committed to burning 100% of LUNC spot and margin trading fees. However, it later revised this to 50%, with a burn delay scheduled until March 2023 to exclude the fees from being re-minted.
Historically, Binance executed LUNC burns on the first day of each month. Yet, recent developments have shown a change in this pattern. In its 25th burn batch, Binance eliminated 1.19 billion LUNC tokens, equivalent to $97,229.23 in trading fees between July 31 and August 29. Surprisingly, Binance completed an additional five smaller burns, leading to speculation that it may have reversed its earlier changes to the burn mechanism.
These burns were followed by a brief 3% surge in LUNC’s price, although the momentum soon waned with the asset falling 0.35%. As of the latest data, LUNC is trading at $0.000085.
Community Proposals and Market Outlook
Amid the fluctuations in burn frequency, the LUNC community has proposed changes to the network. A recent proposal, identified as Proposal 12133, seeks to correct the number of validators working on the network, a figure that was mistakenly altered after a recent software development kit (SDK) update.
If approved, the proposal would restore the maximum number of validators to 100, a move that could improve network security and performance.
Analysts are optimistic about LUNC’s future. Technical indicators like the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggest a neutral market sentiment, with potential for a bullish outlook. According to predictions, LUNC could soon target the $0.0001 resistance level, and a breakout beyond $0.0003 is anticipated by some.
Notably, analyst Javon Marks has been particularly bullish on LUNC, predicting a potential rebound to $0.00042986, which could result in an impressive 342% price surge.
Conclusion
The revised LUNC burn mechanism and Binance’s continued support have fueled speculation of a strong price recovery for Terra Luna Classic. With new proposals on the horizon and positive technical indicators, LUNC could be gearing up for a bullish run, attracting the attention of investors and traders alike. As the community continues to work toward reducing LUNC’s supply and improving network performance, the token’s future looks promising.
