Binance CEO claims that the exchange could potentially impose additional fees for burning LUNC. However, some community members from the altcoin project disagree.
New LUNC burn feature recommended by Binance CEO
In a Q&A session on Friday, Binance CEO “CZ” said that his exchange will not impose 1.2% gas on the transactions of Terra Classic (LUNC) and USTC. As a result, the Terra Classic (LUNC) price dropped by about 10% in an hour to $0.00024, as Binance LUNC accounts for about 35% of the supply. CZ says that token burning will affect volume on Binance. However, the community is pushing the crypto exchange to support it.
Binance announces support for Terra Classic LUNC burns
On September 23, CZ stated that Binance will support the Terra Classic community. However, he stated that the 1.2% private burning practice in off-chain transactions will affect the volume on the crypto exchange. Meanwhile, Binance already applies 1.2% hash burn on deposits and withdrawals. However, there will be no token burning on spot and leverage.
CZ is one of those who believe that burning 1.2 percent gas will make network use cases meaningless. If more transaction fees are charged, people will stop their transactions. So Blockchain will make it less useful. The community wants to tax Terra Classic (LUNC) on off chain transactions. However, the consequences of executing this are probably not possible.
CZ then shared another option to impose a 1.2% transaction fee for incineration. It proposed a feature that would allow users to accept a 1.2% transaction fee and cast paid votes.
Terra community disagrees with CZ
FatMan from the Terra community criticized the proposed feature, claiming it was “pretty ridiculous”. He explains that those wishing to permanently remove tokens from the circulating supply can do so voluntarily by sending them to the incineration address.
The offer was successfully implemented on September 21 for all off-chain transactions. The gas burn is expected to reduce the total supply of the LUNC token to 10 billion. On September 16, Binance, LUNC, and USTC announced that the 1.2% tax-burn fee for deposits and withdrawals will be subject to a 1.2% tax-burn fee. The LUNA token had a wild rally earlier this month and was subsequently interrupted by the South Korean court’s arrest warrant for Terra’s Do Kwon. Earlier this week, prosecutors asked Interpol to issue a “red notice” for Kwon to prevent the controversial crypto entrepreneur from escaping extradition.
cryptocoin.comAs you follow, LUNC is currently trading at $0.0002575. It has lost around 7% in value in the last 24 hours.
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