Terra Classic Proposals Approved by Community, Awaiting Binance’s LUNC Burn Mechanism Return
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Terra Classic is expected to see the return of Binance’s LUNC burn mechanism as long as the community approves three key proposals put forward by a lead developer.
Binance had requested that the Terra Classic team make necessary changes by March 1 to maintain the burn mechanism, and the failure to do so would result in Binance withdrawing its contribution. As part of its move, Binance will only burn 50% of the LUNC spot and margin trading fees, a notable decrease from the 100% it previously charged.
Proposal 11358 received nearly 95% of the votes in favor and seeks to exempt the 0.2% burn tax from internal movement between Binance-owned wallets, which was impacting Binance’s revenue. Proposal 11359 also passed with a majority, with 99.78% of the votes in favor. It aims to create a separate burn wallet to prevent the re-minting of LUNC from Binance-contributed burns.
The proposal also disabled the development fund or seigniorage repayment after the community passed Proposal 11242. Meanwhile, Proposal 11360 received nearly 95% of the support, creating a new parameter that does not use the seigniorage reserve policy. It also has the ability to directly send a percentage of the on-chain tax to the community pool.
All three proposals exceeded the “pass threshold,” and a signaling proposal needs to be approved by the community for code implementation. Once the signaling proposal is passed, Binance’s LUNC burn mechanism will be reintroduced, allowing the Terra Classic community to continue receiving significant LUNC burns.
LUNC Burning Suffered Huge Setback Since Binance’s Absence
Since Binance is the largest burn contributor, with over 20 billion LUNC tokens burned in total, the LUNC burn rate has declined massively in its absence. Terra Classic is looking forward to Binance’s return, and with the proposals’ approval, they are optimistic about the LUNC burn mechanism’s resumption.
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