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<h2 id="header-0">This year, the Terra Luna ecosystem has experienced several ups and downs in the crypto industry. The ecosystem first collapsed in May, but following its revival, it slowly started gaining traction in the crypto community.</h2><p>However, as per an official announcement from Binance, the world's largest <a href="https://www.coingabbar.com/en/crypto-currency-news/binance-feed-tries-to-make-content-more-accessible" rel="noopener noreferrer nofollow">cryptocurrency exchange</a> has halted the burning of Terra Classic (LUNC) trading fees mechanism. The temporary suspension will last until March 20, 2023.</p><p>Binance noted that these changes are being implemented to continue aiding the Terra Classic community in lowering the LUNC token supply. With over 20 billion LUNC burned, Binance remains the largest LUNC burner accounting for more than half of all LUNC burns.</p><p>The term "burning" crypto refers to the process of permanently removing a number of tokens from circulation. This is often performed by transferring the relevant tokens to a burn address, i.e. a wallet from which they can never be reclaimed. This is frequently referred to as destroying tokens.</p><h3 id="possible-reason-behind-binance-move">Possible Reason Behind Binance Move</h3><p>As per Binance's official announcement, “following the recent developments outlined in Proposals 10983 and 11111, Binance will make changes to the burning of LUNC trading fees in order to continue contributing to the supply decrease of LUNC and be in line with what the community had hoped for.”</p><p>Proposal 10983 proposed that the community re-mint 50% of all LUNC burns instead of 10% (including Binance burns) in order to increase the community pool and fund development. Furthermore, proposal 11111 was recently enacted to repeal the provisions of 10983.</p><p>The announcement further added that the platform will burn 50% of LUNC spot and margin trading fees instead of 100% from December 2022. Additionally, it will delay transmitting the LUNC trading fee burn contribution until March 1, 2023, ensuring that LUNC trading fees are not re-minted.</p><p>In response to the Binance update, Terra Grants Foundation director Edward Kim has proposed excluding voluntary LUNC burning from seigniorage. Instead, the Terra Classic core developer proposes that the community should re-mint 50% of the burns from the on-chain tax parameter alone.</p><p>However, the announcement has significantly affected the price of the Terra Classic (LUNC) token.</p><h4>LUNC Price Action</h4><p>Prior to the announcement, the Terra Classic (LUNC) price had surged nearly 50% in the past few days due to a breakout above the 3-month descending channel. However, the announcement triggered the token's price to drop by more than 12% in the last 24 hours.</p><p>At the time of writing, the <a href="https://www.coingabbar.com/en/crypto-currency/terra-luna-lunc-prices-usd" rel="noopener noreferrer nofollow">LUNC token</a> is trading at $0.0001588. Analysts anticipate that if the token breaks the key support levels of $0.0001514 and $0.0001436, it will incur further losses in the future.</p><p><strong>What do you think about the Binance proposal of halting LUNC burning? Share your thoughts in the comment section below.</strong></p><p><strong>Read also: <a href="https://www.coingabbar.com/en/crypto-currency-news/will-kraken-survive-the-bear-market" rel="noopener noreferrer nofollow">Will Kraken Survive the Bear Market?</a></strong></p>

Binance Temporarily Halts Terra Classic (LUNC) Burns

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