MEXC supports LUNC community efforts to reduce the excess supply of Terra Luna Classic (LUNC) tokens.
In a blog post published by crypto exchange MEXC Global 3 days ago, the firm disclosed that it would support the LUNC community burn tax proposal in a time-limited event from 10:00 September 3 to 10:00 September 17 (UTC).
“To support the burn tax proposal from the Terra Classic (LUNC) community, MEXC will launch a time-limited burning event for spot trading fees of LUNC/USDT and LUNC/USDC,” the company wrote.
As per the LUNC tax proposal, which recommends that a 1.2% tax be applied on all on-chain transactions and burnt, MEXC says the spot trading fee for LUNC trading pairs will be adjusted to 1.2%. MEXC notes that it will use the trading fee obtained to carry out secondary market buybacks daily. The LUNC tokens obtained from the buybacks would then be sent to the burn address provided by Terra.
While the event has a time limit of about two weeks, the exchange notes that it could be extended based on feedback from users of the exchange.
Notably, MEXC joins UK-based crypto exchange Y5 Crypto, which announced support for the tax proposal last Tuesday to support the LUNC community.
It bears mentioning that the Terra community has since approved the tax proposal. As such, MEXC started burning LUNC tokens on Sunday. The exchange has so far burned over 25.4 million LUNC in the last two days.
As the first CEX to support the burn tax proposal from the $LUNC community, #MEXC has burnt the spot trading fees of $LUNC generated on the platform according to our time-limited burn event.
Check out the burn result: https://t.co/JZxcETjcHT#TerraClassic #terra https://t.co/61rjKHn52R
— MEXC Global (@MEXC_Global) September 4, 2022
While Terra believes that it will best compensate investors in the LUNC community with its Terra 2.0 project, which it launched in opposition to pleas to burn excess LUNC supply, LUNC community members have taken it upon themselves to try to revive their once favorite project. Notably, the several burn initiatives by the community are geared towards that.
Consequently, the LUNC token has posted impressive gains in the last few weeks and added over $1 billion to its market cap. However, analyst Michaël van de Poppe has cautioned investors to give up hope that the token will ever rise to the $1 mark again. LUNC is currently trading at $0.0002591, up 3.47% in the last 24 hours.