A massive monthly burn of 3.2 billion LUNC tokens has piqued the interest of Luna Classic’s community, which carries on supporting the downtrodden network. Naturally, the monthly burn rate is particularly significant in reducing the over-minted LUNC supply, which can eventually lay the groundwork for re-adoption if a fresh utility case is found along the way.
Big LUNC Supply Elimination Is Overshadowed By..
Precisely, there’s 5,551,675,494,775 LUNC tokens still in circulation at the time of publication, originally starting from 6.48 trillion. Besides, more than 15% of the altcoin’s supply is locked away in staking activities, which adds a sense of scarcity to Terra Luna Classic (LUNC).
However, Luna Classic’s Lag persists: the year-long downward spiral had sent the game-tested Layer-1 altcoin to retest $0.000052, the same key support level that had helped LUNC rebound consecutively in June & April, 2025. While this erratic Terra Luna Classic price movement isn’t exactly new, OKX, one of the globe’s leading exchanges, delisted numerous LUNC pairs.
A week ago, OKX announced the delisting of LUNC/USDT, LUNC/USD, USTC/USDT, as well as the related pairs on Perpetuals markets. With this, LUNC’s chain takes another huge hit in trading volume, which is already garnering just over $11 million on most days in September.
LUNC Price Gets Beat Down On Key Proposal Scrap
Another key issue behind this LUNC price turbulence is the inconsistent whale support. Big-time crypto investors, popularly referred to as crypto whales, have not shown strong buying power at the current price range of $0.000052, despite this support level assisting in consecutive bounce backs earlier this year.
This could be due to division among LUNC members, as the altcoin community recently refused a key stablecoin proposal. The offer in question, proposal #12192, didn’t receive enough LUNC member support for approval, despite the USTD stablecoin having an automated yield-bearing focus that could attract new investors.
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It highlights a recent milestone in Terra Luna Classic’s burn mechanism, where approximately 3.2 billion coins were incinerated (via taxes, Binance fees, and community efforts), reducing the total supply to under 5.6 trillion & pushing cumulative burns past 400 billion since 2022.
The burn created short-term scarcity hype, sparking a quick 10-20% rally as traders bet on reduced supply driving value; similar to past events like the 1.6B weekly burn in February 2025, which fueled a 10% surge amid broader market recovery.
Limited ecosystem growth hampers sustained gains—TVL has dropped to just $800K amid low dApp activity, while high sell pressure from liquidity pools overshadows burns; the 2022 UST collapse stigma also erodes investor confidence.
Burns come from on-chain transaction taxes (a portion auto-burned), Binance’s fee donations (over 50% of total burns, e.g., 760M in Feb 2025), and community/validator contributions, with recent weekly rates hitting 1-2B tokens.
Temporary boosts may fade without utility growth; analysts see potential 50% rally to $0.00008 if TVL rebounds, but descending patterns suggest downside risk to $0.000056 support unless broader adoption kicks in.
