Terra Classic Burn Tax Tripled, But Circulating Supply Remains Large
The Terra Classic community implemented a governance proposal to triple the burn tax from 0.5% to 1.5% on August 2, 2026. This change was expected to significantly reduce the circulating supply of LUNC tokens.
However, an analysis of the data shows that the actual impact has been relatively small. In the first month after the tax increase, 2.62 billion LUNC were burned, which is only a 62% increase from the previous month's burn rate of 1.62 billion.
The total supply of LUNC tokens is approximately 6.449 trillion, and the circulating supply is around 5.519 trillion. The burn tax has removed a significant amount of tokens, but not as much as expected.
Binance, one of the largest exchanges for LUNC trading, burns a monthly average of around 334 million LUNC in fees. While this may seem like a large number, it only accounts for a small percentage of the total circulating supply.