Binance has temporarily ceased operations of Terra Traditional (LUNC) Burns: Token Drops 12%

by | Jan 6, 2023 | Binance, Market News, News | 0 comments

Binance is a cryptocurrency exchange that is the largest in the world in terms of daily cryptocurrency trading volume. It was formed in 2017. Its headquarter is in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who previously built high frequency trading software. Binance was founded in China but relocated its headquarters soon before the Chinese government put limits on cryptocurrency trading.

Binance was investigated for money laundering and tax evasion by the US Department of Justice and the Internal Revenue Service in 2021. The UK’s Financial Conduct Authority ordered Binance to discontinue all regulated activities in the UK by June 2021. Binance provided Russian authorities with client information, including names and addresses, in 2021.

Binance Suspends Terra Classic ($LUNC) Trading, LUNC Price Drops

Binance, the world’s largest cryptocurrency exchange, has temporarily halted the burning of Terra Classic (LUNC) transaction fees until March 2023. The move follows the discussions around Proposals 10983 and 11111 to support the commodities pool. Furthermore, instead of 100%, the crypto exchange will burn 50% of LUNC spot and margin trading costs.

Binance Makes Terra Classic (LUNC) Burning Changes

Cryptocurrency exchange Binance announced on December 28 that it is changing its LUNC burn process to continue to help the Terra Classic community in limiting the LUNC token supply. Thus, Binance will burn 50% of the LUNC spot and margin trading fees instead of 100% with effect from December 28. Binance claims the decision follows recent developments linked to Proposals 10983 and 11111, in which LUNC burn is re-minted as a development fund.

Furthermore, until March 1,2023, the crypto exchange will postpone delivering Terra Classic (LUNC) trade fees to the burn address. It will restrict the re-issuance of LUNC trading fees unless the community approves crucial measures. Furthermore, Binance is in talks with the Terra Grants Foundation, lead by Terra Classic core developer Edward Kim, to implement the necessary adjustments.

It entails generating a new burn wallet to prevent LUNC token re-minting and whitelisting Binance’s wallets to avoid tax when transferring between these wallets. Binance has stated that if the community does not make these modifications, the crypto exchange may discontinue the burn mechanism.

Terra Rebels was blamed by Validator LUNC DAO for entirely breaking its partnership with Binance. He proposes that the LUNC community meet the requirements in order to keep Binance’s support. The community voted to cancel Proposal 10983, which would have restored 10% remint from the 0.2% burn tax and added it to the communal pool instead of 50% remint.

What are Binance’s demands?

The exchange is in contact with the Terra Grants Foundation team in order to make certain improvements. Binance has requested the construction of a new burn wallet, according to the announcement.

The exchange will transmit the LUNC spot and margin trading costs to the new wallet, which will not enable the burn amount to be re-minted. The company has also requested that its wallets be whitelisted. It is done to avoid paying the transaction tax while transferring funds between these wallets.

Binance has halted delivering LUNC trading fee burn donations till March 1st. This will provide the project enough time to make the required improvements. However, if the adjustments are not implemented within the time limit specified, the exchange “will consider withholding the burn contribution in the future.”

The price of LUNC has fallen by 12% in the last 24 hours. It is crucial to note, however, that the asset has recovered 47% since December 22nd. LUNC was trading at $0.00016568 at press time, up 1% in the previous hour.