Binance Announces Support for Terra Classic Network Upgrade Designed to Restore its Usual LUNC Burn Model

This strategic upgrade on the Terra Classic network is scheduled to take place around mid-February 2023. Binance affirmed its support for the LUNC blockchain upgrade in a disclosure published a couple of hours ago.

To improve the proof–of–stake Terra Classic blockchain, Edward Kim, a top LUNC developer proposed a version upgrade last month. Proposal 11310, which passed governance voting on Friday with a 99.99% Yes vote intends to transition the Terra Classic blockchain from the current v.1.0.4 to v.1.0.5. 

Accordingly, Binance, the world’s largest crypto exchange by trading volume, noted in an announcement that it will support the upgrade slated to take place at the Terra Classic block height of 11,543,150, or approximately on February 14. Notably, this is just an estimated schedule as the upgrade could happen earlier or before the date mentioned.

The exchange added that deposits and withdrawals of Terra Classic (LUNC) will be suspended starting from the aforementioned block height. But will reopen deposits and withdrawals for LUNC once the v.1.0.5 upgraded network is stabilized. Additionally, Binance noted that the trading of LUNC will not be affected during the network upgrade. 

It bears mentioning that the execution of this upgrade would enable the Joint L1 Task Force to meet Binance’s remaining requirement to resume LUNC burning.

Recall that in late December 2022, Binance announced a notable change to the LUNC burn model on its platform. According to the exchange, it will start burning 50% of LUNC spot and margin trading fees rather than the usual 100%, citing Terra Classic developers’ plan to re-mint LUNC burns to fund development.

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