The recent announcement made by the largest cryptocurrency exchange revealed that the Binance exchange has created a little amendment to its previous commitment towards burning the Terra Classic (LUNC).
Binance Makes An Amendment
The post stated that Binance would only burn 50% of all LUNC spot and margin trading fees from December instead of 100%. Additionally, it will delay the next batch of LUNC burns to March 1, 2023. Previously, it was scheduled to conduct its next batch of LUNC burns on January 1, 2023.
Read Also: Total LUNC Burn Sits At Over 36 billion, Representing Over 0.5% Of The Total Circulating Supply
The reason why the exchange has to retract for the burning, for now, is to prevent its LUNC burns from being among the token to re-mint as stated by proposals 10983 and 1111.
On the same premise, the Terra Grants Foundation plan to make a separate wallet for the Binance exchange that will not be subjected to reminting and also, the largest crypto exchange thinks that its wallet shouldn’t be part of the 0.2% on-chain tax.
It is worth noting that the Binance exchange remains the biggest LUNC burner with over 20 billion LUNC burnt, representing over 50% of all LUNC burns. Binance implemented the LUNC tax burn proposal that it has zealously committed to the LUNC reduction.
So far, it has sacrificed millions of dollars to support the cause of reducing the LUNC supply. However, recent controversial proposals have put this support to the test.
Fact About Proposal 10983
As stated in the recent post by the Cryptolifedigital, the community re-mints 50% of all LUNC burns instead of 10% (including Binance burns) to beef up the community pool and fund development. Following the launching of the proposal, another proposal came up which was passed three days ago, saying that proposal 10983 should be repealed.
While Binance has not stopped its LUNC burns in response to these proposals, as some previously feared, the crypto exchange has been forced to rethink its approach.
Unsurprisingly, many are not pleased with the outcome, but most are grateful for the continued support.
Edward Kim, the director of the Terra Grants Foundation, tweeted in response to Binance’s announcement, bringing an opinion to exclude voluntary LUNC burns from seigniorage. Instead, the Terra Classic core developer suggests that the community should re-mint 50% of the burns from the on-chain tax parameter alone.