Days after the Terra ecosystem crashed in May, Binance CEO Changpeng Zhao, CZ, promised to support the community whichever it decides to rebuild by highlighting that buybacks and burns might help the Terra ecosystem produce value.
The Terra Classic community, however, feels that CZ has yet to live up to its promise of assisting the Terra Classic community in burning more LUNC by implementing burns on trade with less than one day till the LUNA Classic (LUNC) tax parameter modification goes live. CZ tweeted in may:
“In my tweets, I am simply pointing out the potential issues from my understanding. Minting, forking, don’t create value. Buying back, burning does, but requires funds. Funds that the project team may not have … Regardless of my personal views, or the solution chosen in the end, we will always be here to support the community in any way we can.”
Evidently, Binance has stated that it will support the 1.2% tax burn plan, but only for transactions, deposits, and withdrawals that happen on-chain in this circumstance. It has been noted by a number of community members that this accomplishes little to help the community and only serves to deter individuals from leaving the exchange. As a result, they have pushed the exchange to apply the plan on off-chain transactions, such as spot and margin trading activity.
While the exchange’s answer to this is that it would reevaluate its position, a day before the implementation, nothing has changed.
Terra is Yet to Give Up on Swaying Binance
It’s important to note that the community hasn’t given up trying to influence the top exchange. Moreover, important LUNC developers will participate in a live YouTube Ask Me Anything (AMA) event with officials of the Binance exchange on Thursday. As a result, the terra community has expressed delight at the opportunity to talk to the exchange about the burning trade.
Compared to all exchanges, Binance has the biggest daily trading volume for LUNC, so putting a burn on trade will benefit the Terra Classic community in ways that are unthinkable.
The burn campaign to reduce the surplus LUNC supply is anticipated to be substantially more successful with the help of the exchange since the majority of LUNC trading activity takes place on Binance.
However, if a 1.2% tax is imposed on trading activity, profit-driven crypto exchanges might worry about decreased trading volumes.
The price of LUNC is currently $0.0003025, up 10.61% over the previous 24 hours. With over $400 million in trading volume over the past 24 hours, the LUNC/BUSD and LUNC/USDT pairs on Binance represent 50% of the token’s overall trading volume on exchanges.