Crypto exchange Binance to most likely resume its LUNC burn mechanism as the community passes all three key proposals put forward by Terra Classic core developer Edward Kim of the Joint L1 Task Force.
Binance in December requested the Terra Classic developer team to make necessary changes by March 1 for continuing its LUNC burn mechanism. Failing to do so, the exchange will consider withdrawing the burn contribution. Also, Binance will burn 50% of the LUNC spot and margin trading fees instead of 100% from now onwards.
Proposal 11358 “Wallet Exemption to On-chain Tax” received nearly 95% votes in favor. The proposal aims to exempt the 0.2% burn tax from internal movement between Binance-owned wallets, which was impacting Binance’s revenue.
Proposal 11359 “Separate Burn Wallet Exempt from Seigniorage” also passed in majority with 99.78% votes in favor. The proposal aims to prevent the re-minting of LUNC from burn contributed by Binance. Thus, a separate burn wallet will be created where LUNC sent will remain burned. Currently, the development fund or seigniorage reminting is disabled after the community passed Proposal 11242.
Proposal 11360 “Burn Tax Split to Community Pool” has received almost 95% votes in favor. The proposal seeks the creation of a new parameter that does not utilize the seigniorage remint policy. However, it has an independent ability to directly send a percentage of the on-chain tax to the community pool.
Voting on all three proposals surpassed the “pass threshold” and a signaling proposal needs to be passed by the community for code implementation. It will bring back the Binance LUNC burn mechanism, continuing the large LUNC burns to the community. The LUNC burn rate has declined massively in the absence of Binance, which is the largest burn contributor with over 20 billion LUNC tokens burned in total.
Also Read: US SEC v. Do Kwon: Massive Selloff Coming In Terra (LUNA), Terra Classic (LUNC)?
LUNC price fell nearly 2% in the last 24 hours, with the price currently trading at $0.000166. The 24-hour low and high are $0.0001658 and $0.000171, respectively.
Furthermore, the trading volume has decreased by 12% in the last 24 hours, indicating a decline in interest. The price will remain under pressure until Binance LUNC burn continues.
Also Read: Bitcoin Price Retraces From $25000 Ahead Of US FOMC Minutes Release, Big Fall Coming?
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