Leading cryptocurrency exchange Binance has announced that it is changing the burning mechanism for Terra Classic (LUNC) trading fees.
According to the exchange, the changes are in response to two controversial proposals – Proposal 10983 and 11111 – where LUNC burn is being re-minted as a development fund.
Binance Makes Changes to LUNC Burn Mechanism
As part of the changes, Binance said it would reduce its LUNC spot and margin trading fees from 100% to 50% starting December 28, 2022.
The exchange added that it would delay sending LUNC trading fee burn contributions to burn addresses until March 1, 2023. This will ensure that the trading fees are not re-minted until the LUNC community meets certain requests from Binance.
What are Binance Requests?
The crypto exchange said it had been in discussions with the leadership team from the Terra Grants Foundation concerning the requests.
Binance has asked the foundation to create a new burn wallet, saying it would send LUNC spot and margin trading fees to the new one, which does not allow re-minting of the burn amount.
The trading platform also asked the foundation to whitelist its wallets “so that the transaction tax is not applied when transferring between these wallets.”
Binance said if the community fails to meet these requests, it will end the LUNC Burn mechanism on its platform.
“Binance will continue to work with the community to support the implementation of this new plan, and if for any reason this can’t be done, Binance will consider withdrawing the burn contribution going forward,” the exchange added.
LUNC Drops 12%
Following the announcement, the price of LUNC dropped sharply by more than 12% on the day, despite being one of the best performers over the past few days. At the time of writing, the coin was trading at $0.0001599.
It is worth noting that the overall crypto market is bleeding out, with many altcoins down double digits after bitcoin failed to reclaim $17,000.