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HomeCrypto NewsBinance Updates LUNC Burns Significantly in Response to Token Re-Mints

Binance Updates LUNC Burns Significantly in Response to Token Re-Mints

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Binance postpones its subsequent LUNC burns until March. Starting in December, Binance will only burn 50% rather than 100% of all LUNC spot and margin trading fees. 

According to a blog post from the exchange today, Binance, the largest cryptocurrency exchange in the world by trading volume, has modified the guidelines for its voluntary burn of Terra Luna Classic (LUNC) trading fees. 

It will also push out the following LUNC burns until March 1, 2023. It had previously been planned to burn LUNCs on January 1st, 2023.

The cryptocurrency exchange responded to Terra Classic proposals 10983 and 11111 by saying it is postponing the next burn to stop its LUNC burns from being included in token re-mints. 

Binance stated that it is in touch with the Terra Grants Foundation to establish a burn wallet for Binance that won’t be affected by token re-mints to achieve this. 

Furthermore, Binance wants the 0.2% on-chain tax to be waived for its wallet.

The crypto exchange claims this is consistent with the community’s initial desire to lower the LUNC supply.

Binance Remains the Largest LUNC Burner

Having burned more than 20 billion LUNC, or more than half of all LUNC burns. 

In September, the cryptocurrency exchange burned all LUNC trading costs in response to community requests for LUNC burn support. 

To date, it has made millions of dollars in sacrifices to forward the cause of lowering the supply of LUNC. Recent contentious plans have tested this support, nevertheless.

Proposal 10983 proposed that the community re-mint 50% of all LUNC burns rather than 10% (including Binance burns) to strengthen the community pool and finance development. 

The idea sought to solve the underfunding of Terra Classic development activities, but it angered community members who thought it might harm the community’s connection with volunteer supporters like Binance.

Read Also: https://fxcryptonews.com/vote-to-stop-remitting-50-terra-classic-burns-to-community-pool-now-open/ 

Terra Community Response

The proposal nevertheless passed despite these reservations, which prompted Matt’s Market to propose proposal 11111, which just passed to rescind the terms of 10983. 

As some had initially anticipated, Binance has continued burning LUNC in reaction to these recommendations, but the cryptocurrency exchange has been compelled to reconsider its strategy.

Unsurprisingly, many people are unhappy with the decision, but the majority appreciate the ongoing support.

Director of the Terra Grants Foundation Edward Kim has introduced a proposal to exempt volunteer LUNC burning from seigniorage in reaction to the Binance upgrade. 

According to the Terra Classic core developer, the community should re-mine 50% of the burned from the on-chain tax parameter alone.

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