Why is Terra Classic price up today?

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Why is Terra Classic price up today?

By Charles Thuo - min read

Terra Classic price has hit a daily high of $0.0001919 and it still has a bullish stance. At press time, LUNC was trading at $0.0001819; up 11.75% in the past 24 hours.

KEY TAKEAWAYS

  • The Terra Classic community aims to burn large amounts of LUNC tokens to reduce its circulating supply and revive its price.
  • The community has burned more than 29 billion LUNC tokens so far.
  • About 150 million LUNC tokens were burned in November.

The LUNC token has been struggling ever since the collapse of the original Terra LUNA project which resulted in the creation of the LUNC token after a hard fork. However, the team behind the Terra Classic project has been burning large quantities of LUNC tokens to reduce its circulating supply in a bid to revive its price and it seems to be working though at a slow rate.

Binance burns 6 billion LUNC tokens in a day

Earlier this year LUNC staking and a 1.2% burn tax were introduced after the implementation of the v22 upgrade with various exchanges including KuCoin and Binance adopting the LUNC burn tax. The burn tax was however reduced to 0.02% after the community passed Proposal 5234, which also included redirecting 10% to finance Terra Classic ecosystem development and contributors.

However, Binance shifted its mechanism of burning LUNC tokens to burning the tokens on a monthly basis. Yesterday (December 1, 2022) the exchange burned a whopping 6 billion tokens yesterday, in what is its burn batch since introducing the monthly burn mechanism.

Yesterday’s burn is largely the main reason why the token price has surged to today’s highs.

In October, Binance burned about 13.72 billion LUNC tokens from trading fees on LUNC margin and spot trading. The main reason behind the decrease in the burned LUNC tokens is the reduction of the burning tax from 1.2% to 0.2%.