Burns of $LUNC and $USTC
Burn Mechanism on the Terra Classic Network:
After the collapse of the Terra ecosystem in May 2022, the Terra Classic community implemented an optional burn mechanism to try to reduce the hyperinflated supply of $LUNC and $USTC .
In September 2022, a burn fee of 1.2% was approved on on-chain transactions of $LUNC and $USTC (Proposals 3568 and 4159), which was later reduced to 0.2% in October 2022 (Proposal 5234). This fee is applied only to transactions on the network, but it is not a fixed daily process, as it depends on the volume of transactions carried out.
These burns are automatic in the sense that they occur when there is activity on the blockchain, but they are not scheduled to happen every day in a fixed amount.
Community and Exchange Burns:
Binance, for example, conducts periodic burns of $LUNC based on the trading fees of its users in $LUNC pairs (such as spot and margin). These burns are not daily, but rather monthly or at intervals determined by the exchange. For example, in 2023, Binance burned billions of $LUNC in specific batches.
The community also organizes manual burns, sending tokens to a "dead wallet" (burn wallet), but these actions are sporadic and depend on individual or collective initiatives, not being daily.
Example of Recent Events:
Posts on X and news indicate that large burns occurred at specific times, such as the burn of 251 billion $LUNC and 264 million $USTC TC in November 2024, or 726 million $USTC from the Anchor Protocol in September 2024. These events are isolated, not daily.
Total Supply and Impact
$LUNC: The circulating supply is around 5.4 trillion tokens (according to CoinMarketCap data in March 2025), with over 405 billion already burned so far, according to community updates.
$USTC: The supply is much lower, with over 3.4 billion burned by March 2025, as reported in posts on X.
Burn Mechanism on the Terra Classic Network:
After the collapse of the Terra ecosystem in May 2022, the Terra Classic community implemented an optional burn mechanism to try to reduce the hyperinflated supply of $LUNC and $USTC .
In September 2022, a burn fee of 1.2% was approved on on-chain transactions of $LUNC and $USTC (Proposals 3568 and 4159), which was later reduced to 0.2% in October 2022 (Proposal 5234). This fee is applied only to transactions on the network, but it is not a fixed daily process, as it depends on the volume of transactions carried out.
These burns are automatic in the sense that they occur when there is activity on the blockchain, but they are not scheduled to happen every day in a fixed amount.
Community and Exchange Burns:
Binance, for example, conducts periodic burns of $LUNC based on the trading fees of its users in $LUNC pairs (such as spot and margin). These burns are not daily, but rather monthly or at intervals determined by the exchange. For example, in 2023, Binance burned billions of $LUNC in specific batches.
The community also organizes manual burns, sending tokens to a "dead wallet" (burn wallet), but these actions are sporadic and depend on individual or collective initiatives, not being daily.
Example of Recent Events:
Posts on X and news indicate that large burns occurred at specific times, such as the burn of 251 billion $LUNC and 264 million $USTC TC in November 2024, or 726 million $USTC from the Anchor Protocol in September 2024. These events are isolated, not daily.
Total Supply and Impact
$LUNC: The circulating supply is around 5.4 trillion tokens (according to CoinMarketCap data in March 2025), with over 405 billion already burned so far, according to community updates.
$USTC: The supply is much lower, with over 3.4 billion burned by March 2025, as reported in posts on X.