LUNC News: Binance To Likely End Its Terra Classic ($LUNC) Burn, Here’s Why


Proposal 10983 risks Binance ending its LUNC burn mechanism as developers look for utility. The price of Terra Classic has increased by 10% following the latest burn. Binance, the world’s largest cryptocurrency exchange, will eliminate LUNC spot and margin trading fees to help Terra Classic. Proposal 10983 has divided the community along burning and utility lines. Almost everyone agrees that this plan will get Binance to stop using the LUNC burn mechanism.

LUNC News: Proposal 10983 to Decide Fate of Terra Classic (LUNC)

Proposal 10983 “Parameter Change: Increase Reward Policy Rate Minimum to 0.5,” is currently up for a vote in the Terra Classic community. Half of the 0.2% burn tax would be allocated to the community pool under the proposed plan, with the remaining 10% going toward on-chain improvements.

Large, capital-intensive projects could get funded through community spending proposals, say developers and some validators. This will aid in restoring the practicality of Terra Classic’s blockchain.

Tobias Andersen, a core developer for Terra Classic and a member of Terra Rebels, says that the fastest ways to reduce the LUNC supply are to encourage on-chain activity, turn swaps back on, and lower burn fees. Proposal 5234 to reduce the burn tax from 1.2% to 0.2% and to fund the community pool with 10% of LUNC burn at the end of each epoch was approved by the Terra Classic community.

Creators anticipate more LUNC token burns from dApps, whales, and other projects. The expected rise in the number of LUNC trades after the burn tax was cut did not happen.

On the other hand, the community thinks that Proposal 10983 will convince Binance CEO “CZ” to get rid of the LUNC burn mechanism. Binance is giving money to charity by getting rid of its LUNC trading fees on spot and margin trading pairs.

Over 20 billion LUNC tokens were destroyed in less than two months on Binance. In the meantime, the community, other exchanges, and projects are getting rid of 15 billion LUNC tokens.

A Terra Rebels member tweeted that they are in talks with Binance about proposal 10983.

LUNC Price Soars After Binance Burn

Binance sent 6.39 billion LUNC tokens to the burn address on December 1, which caused the price of Terra Luna Classic to increase by 17%.

In the last 24 hours, the price of LUNC has increased by nearly 10%, reaching $0.0001812. In the past 24 hours, the lowest price of LUNC was $0.0001605, and the highest price it reached was $0.0001919. Within a day’s time, trading volume increased by nearly 300%.


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