Will this be enough to reach 0.01 per LUNC tokens
Binance decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance.
we'll see
In response to the LUNC community's proposal on burning trading fees while maintaining a good trading experience for users, Binance will implement a burning mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the recording address LUNC . The specific amount of LUNC to be burned, its equivalent value in USDT, and the on-chain transaction ID will be updated weekly in this announcement until further notice.
Validity period: 2022-09-21 00:00:00 (UTC) until further notice.
source: binance.com/en/support/announcement/4769eab576c4479eaa14adc1eb587226
"We have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance."
"Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’."
Why the community insisted to Binance about burning tokens
LUNC currently ranks 33rd in capitalization and 7th in trading volume.
That is why so much insistence from the Terra Classic community, due to the volume that LUNC is having, towards Binance to implement the burning of trading commissions.
Its value has increased from the minimum by 30820.2% according to coingecko
How much has the LUNC token burn been so far
I have investigated a lot of time and I have found this page where it shows the circulating and the burnt token.
With the implementation of token burning already implemented by the exchanges we see that the burning has multiplied X4, but it is insufficient to achieve any change in the price of LUNC
LUNC Price
The price of LUNC is up 30820.2% from its lowest point during the Terra crisis, according to coingecko. In fact, the price has shot up nearly 154,2% in the last 30 days due to burning, staking, project building, ecosystem education, and governance activities. Over 500 billion LUNC tokens have already been staked and nearly 5 billion have been burned.
How many LUNC tokens could Binance burn with this new announcement
For this we could compare the 15 days of burning of the MEXC exchange taking into account the volume of operations of each one.
MEXC is the first exchange that implemented the burning of tokens on its own account in LUNC trading operations for 15 days.
The 15 days have passed and these are the results.
Binance Exchange Volume vs MEXC token LUNC
Binance volume $935,205,064
MEXC volume 7,327,749 dollars
Mexc represents only 0.783% of Binance volume
In 15 days MEXC has burned a total of 466,330,428 LUNC tokens.
Binance could burn in 15 days 59,556,887,356 LUNC tokens
LUNC burn calculation by Binance in 10 months
In 30 days Binance could burn twice as much as in 15 days.
LUNC approximately 119,113,774,712 or 119B
In 10 months I could burn 1,191,137,747,126 or 1,191B of LUNC approximately.
This figure could be higher if we add the burning of LUNC due to UCDT operations
Could reach LUNC 0.01 in the short term as announced by the community
LUNC's currency at the time of writing this post is
6,901,743,127,225 or 6,901B
In the current conditions of the crypto market, there would have to be only 1,600B of LUNC tokens with a capitalization of 16B dollars, which would place LUNC in position 8 of the crypto market in capitalization.
6,901 B -1,600 B = 5,301 B of LUNC tokens Should be burned
If binance managed to burn 1,428 B LUNC tokens per year
Count how many years it would take to reach 0.01 per LUNC token
We have to consider that the LUNC trading volume is not always going to be as high as it has been in the last few weeks.
Reflections
As we can see, the idea is very good, managing to obtain a deflationary LUNC token.
We will have to see if the other exchanges add up, how much is the monthly total to project a more approximate figure.
But to get even 0.01 of the previous value would take years under these initially analyzed conditions.
For your vote or comment, thank you
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