Following the historic collapse of the Terra ecosystem in May 2022, Do Kwon and the TerraForm Labs abandoned the failed project to launch a new Terra blockchain devoid of the algorithmic stablecoin parameter. Since then, the Terra Classic (LUNC) became a community-led project, spearheaded by Terra Rebels.
As part of the Terra Classic community's efforts to make a comeback possible for the embattled LUNC token, a proposal to levy a 1.2% tax on all LUNC transactions on the Terra Classic network was rolled out for the community members to vote.
In the proposal, the 1.2% tax was to be burned hence, the governance proposal was labeled as "1.2% LUNC Tax Burn Proposal". I'm sure you must have heard of it as it is the most popular thing in the LUNC community and has been trending in the crypto community as well.
The 1.2% LUNC tax burn proposal eventually passed as it received almost 100% of the Terra Classic community members voted in support of the burn initiative. It is worth noting that the LUNC tax burn initiative aims to reduce the voluminous total supply of the LUNC token from the initial supply of approximately 6.9 trillion units to 10 billion.
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Binance Supports LUNC Tax Burn
Binance, the world's largest blockchain ecosystem and leading cryptocurrency exchange by 24-hour trading volume is among the top exchanges to fully implement the 1.2% LUNC Tax Burn initiative but it didn't come without significant pressure from the Terra Classic community. Other top exchanges are Crypto.com, Bitrue, MEXC, Kucoin, and Huobi among others.
Initially, after the LUNC Tax Burn went live on the Terra Classic network on September 21, Binance only activated the burn for deposits and withdrawal operations carried out on the widely used exchange. However, the LUNC community kept on putting pressure on Binance until the exchange yielded to implement the burn on spot and margin trades.
On September 26, Binance announced that it will burn all trading fees obtained from LUNC spots and margin trades. As revealed by Changpeng Zhao, the CEO of Binance, the popular exchange burned approximately $1.8m worth of LUNC from its income on October 3, 2022. This is just the exchange's first burn amount; more burning activities are said to be disclosed by the leading exchange.
Similarly, MEXC global, the first centralized exchange to implement the 1.2% LUNC Tax Burn destroyed over 154.8 million LUNC tokens within 5 days. With this progress made by the Terra Community in line with LUNC burning, it is believed by some that the embattled token could be revitalized. Also, interest in the project seems to be increasing as it has been trending on Coinmarketcap in recent days. As always, one should endeavour to carry out sufficient research before investing in any project.
Terra Rebels, the group of developers rebuilding the Terra Classic ecosystem has released a new roadmap for the project as the led developer noted that the fallen project has transitioned from the emergency stage to the rebuild and burn stage
At the time of writing, LUNC is trading for $0.0002957.