Binance CEO Promised Support For Terra Community After Collapse, Will He Help Off-Chain Burns (Trading) for Terra Classic (LUNC)?
In a Twitter thread in May, days after the Terra ecosystem collapsed, Binance CEO Changpeng Zhao, CZ, highlighted that buybacks and burning could help the Terra ecosystem create value, pledging to support the community in whatever way it chooses to rebuild.
However, with less than one day left for the LUNA Classic (LUNC) tax parameter change to go live, the Terra Classic community believes that CZ is yet to fulfill its promise helping terra classic community to burn more LUNC by applying burns on trading.
“In my tweets, I am simply pointing out the potential issues from my understanding. Minting, forking, don’t create value. Buying back, burning does, but requires funds. Funds that the project team may not have … Regardless of my personal views, or the solution chosen in the end, we will always be here to support the community in any way we can,” CZ said in the tweets in May.
5/ The last few days, we tried hard to support the Terra community. In my tweets, I am simply pointing out the potential issues from my understanding. Minting, forking, don’t create value. Buying back, burning does, but requires funds. Funds that the project team may not have.
— CZ ? Binance (@cz_binance) May 15, 2022
Notably, Binance has pledged support for the 1.2% tax burn proposal but only for on-chain transactions, deposits, and withdrawals in this case. However, several community members have pointed out that this does little to support the community and only discourages people from getting off the exchange. Consequently, they have urged the exchange to implement the proposal on off-chain transactions, including spot and margin trading activities.
While in response to this, the exchange says it will review its stance, with a day left to the implementation, there is yet to be any change.
It bears mentioning that the community is yet to give up hope on swaying the leading exchange. Notably, on Thursday, key LUNC developers are set to hold a live Ask Me Anything (AMA) session on YouTube with representatives of the Binance exchange. Consequently, community members have expressed excitement at the chance to speak to the exchange about the trading burns.
Binance has the highest daily trading volume for LUNC compared to all exchanges, so implementing a burn on trading will be an unimaginable boost for Terra classic community. As most LUNC trading activity occurs on Binance; as a result, the burn initiative to curb the excess LUNC supply is likely to be significantly more effective with the support of the exchange.
However, profit-oriented crypto exchanges may be concerned about reduced trading volumes should a 1.2% tax be applied to trading activity.
LUNC is currently trading at the $0.0003025 price point, 10.61% higher in the last 24 hours. The LUNC/BUSD and LUNC/USDT pairs on Binance account for 50% of the token’s total trading volume on exchanges, totaling over $400 million in the last 24 hours.