Terra’s rebranded token appears to be desperately looking for revival.
The collapse of Terra ecosystem’s two tokens propelled a great deal of turmoil for the crypto market, the effects of which have continued to haunt the space.
However, Terra Classic (LUNC), the rebranded token of the original Terra chain, spiked by more than 36% over the past 24 hours. The unexpected retreat of the bulls follows a leading crypto exchange’s announcement of implementing the LUNC burn mechanism on trading fees.
After scrapping the initial ideas to initiate a burn-in subscription, Binance revealed plans to implement a mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address.
As per Binance CEO, CZ, the mechanism of a full burn-in tax, once a certain number of subscribers is reached, will be “fair” to all users.
Explaining the move, the exec tweeted:
“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.”
In theory, restricting the circulating supply of their tokens would aid the price growth as demand increases.
The news met with a positive movement in LUNC’s price, which climbed to $0.00032.
The latest surge in the token even managed to overshadow the dump LUNC endured after Terraform Labs’ co-founder Do Kwon was served red notice by Interpol.
LUNC had previously suffered significant declines even though it never really achieved a dead coin status post-crash.
In an attempt to revive the failed blockchain token, a new tax burn regime was floated to reduce its hyperinflated supply and fuel a rally.
The community approved the proposal, which intends to introduce a 1.2% tax rate on every transaction on the blockchain.