Total LUNC burn reaches 25 billion – is it enough?

A total of 24.19 billion Terra Luna Classic (LUNC) tokens have been burned from supply, new data shows.

When Binance announced it would implement the 1.2% LUNC burn tax on the world's largest crypto exchange, the price of LUNC pumped 500%. Binance has been burning funds every week and helped to ramp up the total LUNC burn. 

But is this enough? Will LUNC genuinely experience a price rise?

It would take 23 years to burn LUNC to $1

The current LUNC circulating supply is 6.59 trillion. LUNC has a price of 

$0.00024 and a market cap of $1.6 billion. 

If LUNC can continue burning 24.19 billion tokens each month, it would take another 23 years before the token supply is reduced enough to give LUNC a price of $1. In other words it would take 23 years to burn away over 6.5 trillion LUNC tokens. 

But it's not likely LUNC can continue to burn this much every month. The LUNC community just voted to reduce the burn tax from 1.2% to 0.2%. A total of 10% of the funds collected will also be used for ecosystem development.  

The implementation of the lower burn tax saw Binance's weekly burn volume fall from 5.6 billion LUNC tokens to just 1.3 billion. 

At the reduced rate, it's unlikely LUNC would burn to $1 in your lifetime.

Do LUNC burns have a chance of increasing again?

The community is already voting on a proposal to raise the burn tax once more to 0.6%. But Proposal #7200 is currently not passing. 

Aside from increasing the burn tax once more, developers could look to integrate LUNC burning into an ecosystem. The hyper-deflationary token EverGrow has just launched a similar ecosystem – which could inspire LUNC developers to follow suit.

EverGrow sends 2% of every buy or sell towards buying and burning EverGrow. It's a higher tax which has burned through 5% of supply in a year. But the launch of an NFT marketplace now sees 100% of revenue put towards buying back and burning EverGrow. This will increase with 100% of revenue from a soon-to-launch content subscription platform.

The EverGrow burn rate is set to explode. Though the price is currently $0.0000001 the token has a higher chance of hitting $1 in the next 20 years than LUNC. 

Read more about the EverGrow ecosystem on its website.