As of June 2025, over 410 billion Lunks had been burned, with an average daily burn rate of over 48 million over the past 30 days. Despite the high burn rate, there is more than 5.4 trillion Lunk distribution, up from just 380 million in May 2022.
Following the collapse of the Terra Classic Ecosystem in May 2022, supply of native governance and utility token ranks has swelled significantly, leading to a monumental price crash. As they tried to preserve the ecosystem and restore LUNC prices, the community passed a vote to enact a burn tax on all LUNC token transactions.
With that in mind, how does Terra Classic Burns actually work? Will Lunc Burn Tax succeed in governing within the inflated supply? What is the valid rank tax rate? Please read together to find out.
Important takeaways for rank burns:
- LUNC Burn is a Terra Classic network feature that sends 0.5% of each LUNC transaction to your burn wallet.
- The burn tax will be used to reduce the rank-based inflatable supply, which has increased from 600 million to over 6.5 trillion to 400 million people, following the 2022 USTC DE-PEG.
- The tax was initially set at 1.2% and later fell to 0.2%, and as of June 2025 it was 0.5%.
- So far, over 4100 billion runk tokens have been sent to burn addresses.
- On average, around 48 million Runk tokens are burned every day (based on data from last month).
What led to the supply of hyperinphrases of rank?
Terra Classic is a decentralized, consensus-based blockchain protocol that operates with a secure proof consensus mechanism. Designed to facilitate low-cost, secure transactions, there is a close instant confirmation time.
After USTC lost $1 PEG in May, LUNC supply rose dramatically, attempting to recover PEG. But it’s useless. When everything was said and completed, LUNC distribution supply increased from under 400 million to over 6.5 trillion in 72 hours. As a result, LUNC prices plummeted from over $100 in April to under a cent about a month later.
In the aftermath, the original blockchain was rebranded as Terra Classic (LUNC). Meanwhile, the original Terra (Luna) naming was assigned to a new blockchain launched in June 2022 without the algorithm’s Stablecoin feature.
What is Luna Classic Burn Tax? Lunku’s deflationary pressure
Lunc Burn is a unique Coinburn feature designed to reduce the circulation of tokens while increasing value. Terra Classic Network has been carrying a 0.5% LUNC burn tax since May 2023.
Initially, the rank burn rate was set to 1.2% of each transaction. To promote more activity on the blockchain, the rate was then changed to 0.2%. However, the low tax rate had little impact on the circulating supply of Lunk. In March 2023, active LUNA community members submitted a proposal to raise the LUNC tax rate to 0.5%.
The proposal to make the Luna Classic Burn Tax 0.5% was finally passed in May 2023, providing support for major crypto exchanges, including Binance and Kucoin.
The Luna Classic Burn mechanism works by automatically burning the token every time a transaction occurs on the network. The number of tokens burned is related to the number of tokens in circulation. This increases value over time as the total supply of tokens is constantly decreasing.
Quick Summary: By reducing the total supply of tokens, demand for Luna Classic increases, leading to evaluation of token value. Furthermore, the burn mechanism creates deflationary pressure on the tokens as the total supply of tokens decreases over time.
https://www.youtube.com/watch?v=oif0ESYHP2K
The Luna Classic team has also developed a set of other mechanisms to increase the rarity of tokens. These include repurchase of algorithms that are triggered when certain conditions are met, such as when the price exceeds a given level. This helps to ensure that the Luna Classic Token remains rare and valuable in the long term.
Additionally, some exchanges, such as Binance, also implement the Luna Classic Burn mechanism in transactions that are facilitated by the exchange. This means that even if transactions do not occur directly on the blockchain, the tokens are still burned to protect the network.
When will the next Luna Classic Burn be? Where can I follow the Luna Classic Burn chart?
More than 4100 billion LUNCs have been burned to date, according to the Luna Classic Burn Tracker. sauce
If you’re wondering when the next Luna Classic Burn will take place, the answer is simple – Luna Classic Burn is an automatic, continuous process that runs daily.
The status of the Luna Classic Burn is tracked by various websites that provide users with a chart showing the number of tokens burned since a burn mechanism, such as the Lunc Burner, first went live. This allows users to track the progress of the burn and get a better understanding of the burn mechanism.
The Luna Classic Burn Chart also displays information about the number and number of tokens burned for each transaction. This allows users to track the current state of Luna Classic tokens and their deflation nature. By understanding the deflationary nature of Luna Classic Tokens and its burn mechanisms, users can better understand why reducing circulation supply is important for increasing value over time.
It is worth noting that Binance, which accounts for 70% of all trading volumes in the space, promises to run Lunc Burn on a monthly basis. For each first day of the month, Binance calculates the total amount of lunk burned based on the previous month’s transaction fee and sends it to the burn address.
How many rank tokens have been burned so far? Luna Classic Burn Chart
As of June 2025, approximately 60.7% of the burned Lunks came from Terra Form Labs. Binance is the second largest LUNC burn source, 17.8% of the total. sauce
The total amount of rank tokens burned so far is around 400 billion, or about 6.3% of the total supply. Binance burned 72.9 billion rung of tokens as of June 2025, while Terraform Labs burned 249 billion.
It is worth noting that after the establishment of the proposal “5234”, the percentage of Luna Classic Token Burns fell, with tax burns falling from 1.2% to 0.2%. However, later suggestions (calls) by “dfunk”Terra Classic’s new economic policy“) Tax rate has been set to 0.5%.
The daily rank burn rate is roughly worth $2,900 (according to data from the last 30 days).
However, LUNC Burn is not only limited to exchanges, but is also implemented by the Luna Classic Network itself. This means that when a transaction occurs on the blockchain, the token is automatically burned. This is done to ensure that the total supply of tokens is constantly decreasing.
Let’s take a closer look at the number of Runk tokens burned so far.
- Total rank burned: 410,419,163,993Lunk
- Rank burned in chains: 71.335,537,236 LUNC
- Sent directly to Lunc Burn Wallet: 339.084,239,570 LUNC
- Total burned runk: 25.10 million dollars
Conclusion: Will Luna Classic Burns help raise the price of LUNCs?
LUNC Burn is a unique approach to reducing the circular supply of tokens and increasing value over time. By burning some of the tokens every time someone trades on the blockchain, Luna Classic can reduce the total number of tokens in circulation and ensure that users are rewarded by holding coins. Many users hope that the burn tax will help to help restore the rank to its previous glory.
Given the current toconomy, it’s hard to imagine Luna Classic reaching $1 or $0.10 (at $1, LUNC’s market capitalization exceeds $5 trillion, which is not feasible), but LUNC could still have a bright future thanks to its enthusiastic community.