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Can The Terra Classic Burn Mechanism Impact The LUNC Price? Binance CEO Speaks Out

12 Oct, 20222 min readOther
Can The Terra Classic Burn Mechanism Impact The LUNC Price? Binance CEO Speaks Out

The bears have regained their dominant position in the crypto space, causing Bitcoin to fall to a low of $19,000 yesterday. The entire market flipped, leading to crashes in several altcoins, including TerraClassic.

Terra Luna Classic’s price has dropped from $0.000302 to $0.000263, recording a 13.61% fall in 12 hours.

True Or False?: “Lower Fees Will Bring Greater Burn”

CEO Changpeng Zhao revealed last month that Binance would provide an opt-in system for the 1.2% fee burn per transaction, stressing the possibility that traders may leave the exchange if the burn were implemented for all trades.

He has issued yet another statement on this by claiming that the lower the fees, the larger the burn, and apparently, he has the figures to back it up.

According to Terra Rebels’ summary of an AMA held three days ago, CZ predicted that decreased fees will lead to higher burns.

CZ explains, “We require low pricing to maximize LUNC fee revenue, and then we burn all revenue.”

The increased fee does not mean more money; on the contrary, it usually reduces sales. Most LUNC holders feel increasing fees to 1.2% will lead Binance to burn more LUNC.

In addition, he declared, “… we spend all of our money. Trading costs for LUNC have no financial impact on us. We’re going to be burning it all.”

He also urged other exchanges to burn LUNC while stressing that he had no authority over them.

“I also urge other markets to implement this… But neither I nor the LUNC community has any say over any other transactions. We’ve done our part; now it’s up to everyone else.”

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