Binance to Implement Terra Classic Burn Mechanism on Trading Fees, LUNC Price Up 35%
- The original Terra network that collapsed earlier this year rebranded to Terra Classic, thereby changing its stablecoins to Terra Classic USD(USTC and Terra KRW (KRT).
- The Terra network saga saw over $40 billion wiped out of the market, leaving most companies, including BlockFi, exposed.
- Nevertheless, the token has gained approximately 30911.5 per cent after hitting a low of $0.000000999967 a month later.
Binance cryptocurrency exchange has announced that it will implement a burn mechanism to obliterate all trading fees on Terra Classic (LUNC) spot and margin trading pairs. The largest crypto asset exchange by daily traded volume noted that it would send the collected LUNC to a burn address designated to the Terra network.
Earlier this month, the Terra Classic community passed Proposals 3568 and 4159, intended to introduce a 1.2 per cent tax burn for all on-chain transactions of LUNC and USTC.
Notably, the original Terra network that collapsed earlier this year rebranded to Terra Classic, thereby changing its stablecoins to Terra Classic USD(USTC and Terra KRW (KRT).
“In accordance with Terra governance, these proposals are being created to change the tax parameter from its current value of 0 to 0.012 (1.2%). The tax will be applied to all currency denominations currently available on-chain, including LUNC and USTC,” Binance noted.
Following the announcement, among other internal developments, the LUNC token has gained approximately 35.2 per cent to exchange hands at around $0.00031268.
According to our market data, the Terra Classic LUNC has a market capitalisation of $2,166,785,456 and a daily reported trading volume of approximately $2.17 billion.
Terra LUNA Saga at a Glance
The Terra network saga saw over $40 billion wiped out of the market, leaving most companies, including BlockFi, exposed. To put the matter in a different perspective, the LUNA token was exchanging hands for slightly over $119 back on April 05, this year. Nevertheless, the token has gained approximately 30911.5 per cent after hitting a low of $0.000000999967 a month later.
Ever since, the Terra network has struggled to regain the trust of regulators and global investors. This is despite the fact that the team has worked tirelessly to rebrand the original network.
The USTC is still depegged from the United States dollar and currently trades around $0.03311847, up 13 per cent in the past 24 hours.
According to our data, the USTC stablecoin has a market capitalization of approximately $323,615,032. Additionally, its 24 hour trading volume stands at around $66 million.
In a bid to revive the collapsed project, Do Kwon previously announced a new network dubbed Terra Luna. However, global regulators think the move is predatory, hereby the recent arrest warrant against him from the South Korean government.
Earlier on Monday, the Interpol issued a red notice for Kwon, requesting law enforcement agencies worldwide to search and arrest him immediately. The South Korea government thinks Kwon is on the run despite previous denials from the Terra network founder.
The Terra Luna collapse earlier this year has prompted the United States regulators to draft a bill banning all decentralized stablecoins, otherwise not physically backed by the fiat.