As a report has it, Binance, the largest digital assets exchange by trading volume, will continue to burn LUNC tokens on suspension until their requirements are fully met by the Terra Classic community.
Classy, a crypto influencer and top validator on the Terra Classic network, recently revealed how to meet Binance’s requirement regarding LUNC burn contribution and what is stopping the Joint L1 Task Force team from granting the exchange’s second demand.
For Binance to proceed with burning more LUNC tokens, the recent proposal submitted by Edward Kim must pass governance voting, Classy Crypto disclosed in a Youtube video. Proposal 11310 seeks to upgrade the Terra Classic blockchain from the current version (v1.0.4) to an advanced version, v1.0.5.
Binance’s second demand is to have its wallets whitelisted so that the transaction tax is not applied when transferring LUNC to be burned. This condition can only be met when Proposal 11310 passes, according to Classy. Voting on the proposal is underway but the passing threshold is yet to be reached at the time of writing.
If more validators support the proposal by voting Yes then Binance will pick up LUNC burning by March 2023. But if the proposal fails to pass then Binance’s support will be lost in the Terra Classic supply reduction quest as earlier stated by the exchange. “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 announced.
Current State of Binance With LUNC Burning
Binance is the largest contributor to the LUNC supply reduction expedition with roughly 20.1 billion LUNC destroyed voluntarily from fees derived from Terra Classic spot and margin trading. Given the passing of the questionable proposals to re-mint burned LUNC, Binance introduced a notable change to its LUNC burn approach.
Particularly, the exchange ceased burning LUNC after its last burning event on December 2, 2022, when 6.3 billion LUNC were taken out of circulation. The exchange further reduced its support for LUNC burning by 50%, paused further burning events until March 2023, and highlighted two conditions for future LUNC burning.
As reported by TimesTabloid, Binance’s first condition was met by the Terra Classic community as the LUNC reminting agenda was finally ended. But the LUNC community is yet to meet the exchange’s second demand.
Binance wants its wallets to be whitelisted so that the transaction tax is not applied when transferring LUNC tokens to be burned. As revealed by the top LUNC validator, the determining factor is the outcome of proposal 11310 submitted by Edward Kim to transit the Terra Classic blockchain to v.1.0.5.