- LUNC price is holding near $0.00005 as Terra Classic’s 1.5% burn tax supports ongoing supply reduction.
- Binance also burned 334.9 million LUNC in September, but stronger demand is needed for a sustained recovery.
LUNC is holding near $0.00005 as Terra Classic’s latest burn measures reshape the token’s supply-reduction strategy. The network raised its on-chain tax rate to 1.5% in August, while Binance has continued removing LUNC through its monthly burns.
LUNC is currently trading around $0.0000504, with a market capitalization of about $280 million and $9.1 million in 24-hour trading volume.
Terra Classic Raises LUNC Burn Tax to 1.5%
One of the biggest recent developments for LUNC came through Terra Classic governance. Proposal 12223, which passed on August 2, increased the network’s on-chain tax rate from 0.5% to 1.5%. Under the new structure, 1.2% goes toward burning LUNC, while 0.15% goes to the Community Pool and another 0.15% goes to the Oracle Pool.
The change gives the Terra Classic community a higher burn rate whenever qualifying on-chain transactions generate tax revenue.
However, the higher tax does not automatically translate into a sharp reduction in LUNC’s supply. The token still has a supply measured in the trillions, meaning sustained activity and continued burns would be needed to create a significant long-term impact.
Binance Continues Monthly LUNC Burns
Exchange-led burns remain an important part of the LUNC supply-reduction strategy. Binance completed its latest monthly LUNC burn on September 1, removing approximately 334.9 million LUNC from circulation using trading fees collected during August.
The total LUNC burned through Binance’s program has now reached about 87.76 billion. The September burn was smaller than several previous monthly burns, including the more than 2.19 billion LUNC burned in June.
Still, regular burns give Terra Classic a continued mechanism for gradually reducing LUNC’s supply over time.
LUNC Price Remains Under Pressure
LUNC has pulled back from the levels reached during its August rally, when the token climbed as high as $0.0000637. It has since moved closer to $0.00005, closing at around $0.0000508 on September 9 after reaching an intraday high of roughly $0.0000540.
The decline comes as Terra Classic continues its supply-reduction efforts through higher burn taxes and regular LUNC burns. However, those developments have yet to produce enough buying pressure to keep the price near its recent highs.
LUNC now needs stronger trading activity and sustained demand to regain the August high. For traders, the $0.00005 area remains an important level as the token attempts to stabilize after the recent pullback.
What Could Move LUNC Next?
Further LUNC price movement could depend on a combination of network activity, additional burns, governance decisions and broader crypto market conditions.
The 1.5% on-chain tax gives the Terra Classic community a stronger supply-reduction mechanism, while Binance’s monthly burns continue to remove LUNC from its supply.
At the same time, recent trading volumes remain modest compared with LUNC’s market capitalization. That suggests the burn narrative remains important, but stronger demand will likely be needed for LUNC to sustain a meaningful price recovery.
For now, traders are watching the $0.00005 area closely while monitoring Terra Classic governance and future burn figures for signs of a change in LUNC’s trend.
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