Luna Classic (LUNC), the renamed native token of the Terra network that infamously crashed to virtually zero in May, is rising in value today as traders bet that the new burn update by Binance could breathe some new life into the much-berated crypto.
The world’s largest cryptocurrency exchange by trading volume, Binance, announced Monday that it would be burning all trading fees accrued by the company on Terra Classic (LUNC) spot and margin pairs against BUSD and USDT.
The trading commissions on LUNC spot and margin trading pairs from the previous week will be converted to LUNC and automatically sent to the burn address every Monday at 00:00:00 UTC. The report on the burn and the following on-chain burn transaction ID will be updated every Tuesday at 00:00:00 UTC. The first batch of trading fees to be burned will be calculated from September 21 to October 2.
The surprising decision comes after the abandonment of the exchange’s prior plan to introduce a flat trading tax rate of 1.2% for all LUNC trading after opt-in traders reach 50% of the total LUNC trading volume on the exchange. Binance CEO Changpeng Zhao, aka CZ, noted that the opt-in proposal would take a lot of time to implement and was also met with skepticism by the LUNC community. As such, the exchange decided to come up with a new solution to help the community bring down LUNC’s bloated circulating supply.
Zhao also clarified that Binance would bear the burning costs, not the customers. “This way, we can be fair to all users. 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,” he summarized.
Notably, the Terra Classic burn will not affect BNB fee discounts, fee rebates, or other fee adjustments.
Binance’s announcement was well received as enthusiasts rushed to get a piece of Luna Classic. LUNC gained a whopping 38.57% in the past 24 hours.
Still, the token is changing hands at a fraction of a cent ($0.0003147 to be precise) and is down by approximately 100% since the start of the year.
Terra’s multibillion-dollar collapse in May was the epicentre of the present predicament in the crypto market and triggered the insolvency of several high-profile crypto lenders. Efforts to revive the old Terra blockchain have progressed somewhat slowly.
On the other end of the spectrum, South Korean authorities are hunting for Do Kwon. It was announced today that Interpol had issued a red notice for the Terraform Labs co-founder. This means law enforcement worldwide is now tracing Kwon’s whereabouts to potentially arrest him before his repatriation to his home country, South Korea.