Terra Luna Classic, the original version, of the crashed cryptocurrency Terra Luna (LUNC), is exploding upwards on Monday afternoon. The coin has made huge gains, sending it to levels not seen since the beginning of last week.

The LUNC/USD currency pair was trading at around $0.00029885 as of the writing of this article. There were intraday highs of $0.00031905 on major exchanges that trade the coin.

According to CoinGecko data, the cryptocurrency has surged by more than 40% in the past 24 hours – most of the gains coming after what is good news in the form of Binance support for the cryptocurrency’s burn mechanism.

Binance uses LUNC Burn

On Monday, Binance CEO Changpeng Zhao announced that the crypto exchange, the world’s largest by trading volume, would implement a 1.2% tax rate burn as the Terra Luna Classic community looks to reduce the coin’s supply.

“Binance will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address. The specific amount of LUNC to be burned, its equivalent value in USDT, and on-chain transaction ID will be updated each week in this announcement until further notice,” the exchange informed Its customers.

Zhao also commented about the LUNC tax-burn, noting that the platform has implemented the model because LUNC owners would not have supported an opt-in proposal. He tweeted:

Instead, we decided to burn all trading fees received on the Binance LUNC/BUSD/LUNC/USDT spot trading pairs and margin trading pairs.

All fees will be converted to LUNC, and then sent to burn address. The burn is paid at our expense, not the users’.

— CZ 🔶 Binance (@cz_binance) September 26, 2022

As for what happens to the fees, Binance noted: “Trading fees on LUNC spot and margin trading pairs that collected in a token other than LUNC (e.g., USDT, BUSD and BNB) will be converted to LUNC with the real-time exchange rates on Binance every Monday at 00:00:00 (UTC).”

Terra Luna Classic registered a trading volume of just over $2.4 Billion in the past 24 hours. CoinGecko data showed a circulating supply 690,298,301,199.