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The world’s largest crypto exchange Binance has committed its part to the Terra Classic community by burning trading fees on LUNC spot and margin trading pairs. However, Proposal 10983 has divided the community to either choose between burn or utility as it proposes to increase the community pool from 10% to 50%. Most believe the proposal will make Binance to revoke its LUNC burn mechanism.
Proposal 10983 to Decide Fate of Terra Classic (LUNC)
The Terra Classic community currently votes on Proposal 10983 “Parameter Change: Increase RewardPolicy rate_min to 0.5“. The proposal aims to fund the community pool with 50% of the 0.2% burn tax instead of 10% for on-chain development.
Developers and some validators believe the proposal will help fund large, capital-intensive projects via community spend proposals. It will help bring back utility to the Terra Classic blockchain.
Tobias Andersen, a Terra Classic core developer and Terra Rebels member claims that the fastest way to reduce LUNC supply is by incentivizing activity on-chain, re-enabling swaps, and implementing lower burn fees. The Terra Classic community indeed passed Proposal 5234 to lower the burn tax from 1.2% to 0.2% and fund the community pool with 10% of LUNC burn at the end of each epoch.
Developers believe dApps, whales, and other projects will burn more LUNC tokens. However, decreasing the burn tax failed to increase LUNC trading volume as expected earlier.
On the other hand, the community believes Proposal 10983 will make Binance CEO “CZ” to revoke the LUNC burn mechanism. Binance is burning its trading fees on LUNC spot and margin trading pairs for its contribution to the community.
Binance has burned over 20 billion LUNC tokens in just 2 months. Meanwhile, the community, other exchanges, and projects have burned 15 billion LUNC tokens.
Terra Rebels member in a tweet announced that the group is in discussion with Binance regarding Proposal 10983.
LUNC Price Soars After Binance Burn
Terra Classic price jumped 17% after Binance burned 6.39 billion LUNC tokens by sending them to the burn address on December 1.
The LUNC price is currently trading at $0.0001812, up nearly 10% in the last 24 hours. The 24-hour low and high for LUNC are $0.0001605 and $0.0001919, respectively. The trading volume rose nearly 300% in the last 24 hours.
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