Binance Suspends Terra Classic ($LUNC) Burn, LUNC Price Falls

The world’s largest crypto exchange Binance has temporarily suspended the burning of Terra Classic (LUNC) trading fees until March 2023. The move comes following the developments related to Proposal 10983 and Proposal 11111 to fund the commodity pool. Moreover, the crypto exchange will burn 50% of LUNC spot and margin trading fees instead of 100%.

Binance Implements Changes To Terra Classic (LUNC) Burn

Crypto exchange Binance, in an official announcement on December 28, said they are making changes to its LUNC burn mechanism to continue to support the Terra Classic community in decreasing the LUNC tokens supply. Thus, Binance will burn 50% of the LUNC spot and margin trading fees instead of 100% with effect from December 28.

Binance asserts the move comes following the recent developments related to Proposal 10983 and Proposal 11111, where LUNC burn is re-minted as a development fund. Also, the crypto exchange will delay sending Terra Classic (LUNC) trading fees to the burn address until March 1, 2023. It will prevent LUNC trading fees from being re-minted until the community passes key proposals.

In addition, Binance is in discussion with the Terra Grants Foundation, which is led by Terra Classic core developer Edward Kim, to make necessary changes. It includes creating a new burn wallet to prevent the re-minting of LUNC tokens and whitelisting Binance’s wallets to prevent tax when transferring between these wallets.

Binance said if the community fails to make these changes, the crypto exchange may stop the burn mechanism.

“Binance will continue to work with the community to support the implementation of this new plan, and if for any reason this can’t be done, Binance will consider withdrawing the burn contribution going forward.”

Validator LUNC DAO blamed Terra Rebels for completely destroying its relationship with Binance. He suggests the LUNC community fulfills the conditions in order to retain Binance’s support. The community has passed Proposal 11111 to repeal Proposal 10983 to bring back 10% remint from the 0.2% burn tax and add to the community pool, instead of 50% remint.

Terra Classic (LUNC) Price Rally

Terra Classic (LUNC) price has rallied nearly 50% in the last few days due to a breakout above the 3-month descending channel. The LUNC price is currently trading at $0.000165, down from $0.00018 in the last 24 hours.

Also Read: Terra Classic (LUNC) Price Skyrockets, More Rally Ahead?

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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