Binance burns $1.9M LUNC tokens

Binance announced that it has burned 5.5 billion Luna Classic tokens following its implementation of the burn mechanism.

#Binance completes the first $LUNC burn, burning all trading fees collected from LUNC spot and margin trading pairs.

For more details about the first burn and all future burns, please check the announcement linked below for weekly updates moving forward.https://t.co/Depz9nYDVO

— Binance (@binance) October 3, 2022

According to the announcement by the firm, it burned all the trading fees for LUNC spot and margin trading pairs. The burn program began on Sept. 21.

The burnt 5.5 billion LUNC tokens represent the fees the exchange got between Sept. 21 to Oct. 1.

Binance was previously reluctant about the implementation of the 1.2% burn tax mechanism, saying it was going to add an opt-in button for users. However, the community’s negative reaction to the idea forced the exchange to cancel the plan.

LUNC community confirms Binance burn

A Twitter account tracking Luna Burn confirmed that Binance has sent the tokens to the LUNC burn address. At the current price, it means that almost $1.9 million worth of LUNC was burned.

🔥 Burn alert! 5,595,907,838 #LUNC ($1,899,923) burned to Luna Burn Wallet! https://t.co/R5MZrDmz4a #LunaBurn #BurnLuna

— LunaBurnTracker (@LunaBurnTracker) October 3, 2022

The LUNC DAO also confirmed the development, adding that “this was a low volume week relative to the last few months. They’ll be burning all fees every week. More volume = more burned.”

Community divided on the effect of Binance burn

While many are excited about the burn, others believe it would take a while before enough tokens would be burnt to reduce LUNC’s total supply of almost 7 trillion.

A Twitter user pointed out that it will take 15 years to reduce the supply to 10 billion at this rate.

At this rate, we’ll get to 10 billion in 15 years. I’m patient and I’m definitely not going to sell, but honestly…anything over 8 years doesn’t make sense to me.

— Milan Jansa (@MilanJansa) October 3, 2022

FatMan Terra described the burn idea has “absurd,” saying a developer team could have been hired “to build a suite of useful products/tools instead.”

At the behest of the “LUNC army”, Binance just threw $1.8 million dollars into the burn address. This will have a 0.09% impact on supply reduction.

Just think of how absurd this is. With that money, you could hire a dev team to build a suite of useful products/tools instead… https://t.co/3wnrzbdGum

— FatMan (@FatManTerra) October 3, 2022

Meanwhile, the burn is yet to affect LUNC’s price performance. The digital asset has shed roughly 5.6% of its value over the last 24 hours.