Binance LUNC Burn Mechanism Returns to Terra Luna Classic, Great Price Rally?
Binance will most likely resume its LUNC burning mechanism in crypto exchange Binance if the community approves all three key proposals made by Edward Kim, Terra Classic core developer and Joint L1 Task Force member.
Binance requested that Terra Classic’s developer team make the necessary changes by March 1, in order to continue its LUNC burning mechanism. The exchange may withdraw the contribution if it fails to do so. Binance will also burn 50% of the LUNC margin trading fees and spot trading fees from now on, instead of 100%.
Nearly 95% of the votes for Proposal 11358, “Wallet Exemption to on-chain Tax”, were in favor. The proposal seeks to exempt 0.2% of internal movement between Binance wallets from the burn tax, which was negatively impacting Binance’s revenue.
Proposal 11359, “Separate Burn Wallet exempt from Seigniorage”, was also approved by a majority of 99.78%. The proposal aims at preventing the re-minting LUNC from a Binance burn. A separate wallet for burn will be created, where LUNC will still be burned. After the community passed Proposal 11242, the seigniorage or development fund is now disabled.
Nearly 95% of the votes for Proposal 11360, “Burn Tax Split To Community Pool”, were in favor. The proposal proposes to create a new parameter that doesn’t use the seigniorage-remint policy. It does have the independent ability to send a portion of the on-chain taxes directly to the community pool.
Voting on all three propositions exceeded the “pass threshold”, and a signaling suggestion must be passed by the community to allow code implementation. It will bring back Binance’s LUNC burning mechanism, allowing for continued large-scale LUNC fires to the community. In the absence of Binance (largest contributor to LUNC tokens), the LUNC burn rate has fallen dramatically.
Also read: US SEC v. Do Kwon – Massive Selloff Coming in Terra (LUNA), Terra Classic(LUNC)
The LUNC price dropped nearly 2% over the last 24 hours. It currently trades at $0.000166. The low and high for the 24-hour are $0.0001658 (or $0.000171) respectively.
The trading volume has dropped by 12% over the last 24 hours, which indicates a decline of interest. The price will continue to be under pressure until Binance LUNC continues.
Also read: Bitcoin Price Retraces From $25000 Ahead of US FOMC Minutes Release. Big Fall Coming!
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