Terra Classic Community Supports LUNC Burns Proposal

Terra Classic's Overwhelming Support

The Terra Classic community has decisively voted in favor of a proposal to resume Binance LUNC burns. This initiative was endorsed by 96.6% of voters, highlighting strong community backing. The proposal seeks to align with Binance's conditions for resuming these burns, an important step for the Terra Classic ecosystem.

Key Proposal Features

The upcoming network release, v1.1.0, will introduce crucial features designed to meet Binance's requirements. These include a tax exemption list, mandatory security updates, and the exclusion of Binance LUNC burns from re-minting. These changes aim to address concerns raised by Binance, which halted LUNC trading fee burns last year.

Binance's Conditions and Timeline

Binance has stipulated clear conditions for resuming LUNC burns. The exchange requires that Terra Classic exclude Binance's burns from token re-mints and offer on-chain tax exemptions for its wallet. If these demands are met by March 1, Binance is expected to resume LUNC burns at a reduced rate of 50% of the fees obtained through LUNC trading.

Implementation and Impact

Associate Professor Edward Kim introduced the proposal, advocating for these optional features in the Terra Classic v1.1.0 update. Scheduled for block 11,734,000, around February 28, 2023, this upgrade may cause temporary service disruptions for full nodes and validators. The anticipated outcome is the resumption of Binance's LUNC burns, albeit at a lower rate, potentially benefiting the Terra Classic community by increasing token scarcity and value.

By aligning with Binance's conditions, Terra Classic aims to foster a more robust and compliant ecosystem, potentially enhancing its appeal and functionality within the broader crypto market.