LUNC Burn Surges 176,084% But Price Continues To Plummet Despite The Effort

The Terra Classic community has successfully implemented the 1.2% tax-burning mechanism that further boosted the burn rate. The community even saw a staggering 176,084% burn rate in just a day, but despite the effort, the token's price continues to tumble.

The impressive statistics were reported by a Twitter account called LUNC Burn, which keeps track of all Terra Classic burns. The account shared early Tuesday morning that the community has burned a total of 18.12 billion LUNC tokens and 5.11 billion tokens since the implementation of the 1.2% tax-burning mechanism.

The account also revealed that on Monday alone, 3,003,289,264 Terra Classic tokens were burned, which is approximately worth $818,787, based on the prevailing market price of the crypto asset.

These numbers mean that there was a 176,084% surge in the burn rate of the community on that day.

Interestingly, the biggest chunk of the burning activity was contributed by Binance's burning mechanism, which destroyed almost 3 billion tokens Monday. The world's biggest cryptocurrency exchange (CEX) platform sent 2,992,563,505 LUNC worth approximately $922 million to a dead wallet.

Unlike other CEX, Binance does not follow the 1.2% tax burning proposal. Instead, it has implemented a more efficient burning mechanism where all fees obtained from LUNC spot and margin trading pairs are converted to LUNC and then sent to a dead wallet to permanently remove them from circulation, significantly reducing the number of the crypto asset's total circulating supply.

So far, Binance has burned a total of 8.5 billion Terra Classic from two major burning activities, which is 53.3% of the total LUNC burned. While it may seem that the community, along with other CEX, is burning a remarkable number of tokens, it is just a small chunk of the total Terra Classic supply, which is 6.9 trillion.

Many Terra Classic holders anticipate that since the burning initiative is paying off, the price of the crypto asset will surge, with some even hoping to see its moon. Unfortunately, this is not what's happening.

LUNC was trading down 10% at $0.0002728 as of 8:30 a.m. ET Tuesday from its price of $0.0003130 at 4:10 p.m. ET Monday. As of 8:48 a.m. ET Tuesday, LUNC was trading up 3.69% at $0.0002829 with a 24-hour volume of $504,535,264, based on the latest data from CoinMarketCap.