Binance Likely to Resume Terra Classic Burns as Community Passes Key Proposals

All proposals addressing Binance concerns have crossed the pass threshold.

Binance will likely resume its initially-promised contribution to the Terra Classic (LUNC) burn initiative as the LUNC community votes to pass two key signal proposals addressing the exchange’s concerns.

Background

The signal proposals were introduced by Terra Classic core developer Edward Kim last Tuesday, shortly after Binance made changes to their burn contribution following the passing of Proposal 10983, which sought to re-mint 50% of all burned LUNC tokens instead of 10% to introduce more funds to the community pool.

Not willing to see most of its burned tokens re-minted, Binance had to suspend its burns till March and proposed conditions for the contribution to resume burns on exchange. The exchange noted that it would resume its burns if the needs were met by March 1. It also disclosed plans to burn 50% of trading fees instead of the initially-promised 100%.

Passed Proposals

Although Kim introduced three signal proposals, only two of them were aimed at addressing these concerns. Proposal 11358 excludes Binance-owned wallets from the 0.2% on-chain tax during internal transfers, as requested. Binance provided a list of its owned wallets to the community in this regard, but external movements will remain taxes. This proposal has successfully passed.

Proposal 11359 seeks the community’s approval on creating a separate LUNC burn wallet for Binance to prevent reminting of tokens in the future. Any LUNC sent to the new wallet will be excluded from the seigniorage remint calculation and remain to burn. Binance realizes that though the seigniorage has been turned off, it could still be turned on. This proposal has also passed.

Following the approval of these proposals, Proposal 11367 was brought up yesterday to introduce a software upgrade of the LUNC blockchain to v1.1.0, which will implement the proposed features. The proposal will end in 6 days, and so far, every validator that has voted has given a Yes.

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