The burn rate remains underwhelming.
After weeks of anticipation and excitement in the LUNA Classic (LUNC) community, the 1.2% tax parameter change finally went live last Wednesday. However, in the days since the tax burn went live, only about 1.46 billion LUNC has been burned by the tax, according to data from TerRarity.io.
As per the data, 5.7 billion LUNC has been burned in total, with 4.24 billion sent to the burn address by investors since the community started incentivizing burning. Notably, the current burn rate sits at 296,711,492 LUNC daily, bringing the total supply down to 6.895 trillion LUNC. Furthermore, TerRarity.io data shows that at this rate in a year, only about 113 billion LUNC will be burned, a far cry from targets of about 1 trillion as the community hopes to bring down the supply to 10 billion LUNC eventually.
In the face of this, the community is channeling its efforts toward lobbying central exchanges to implement the tax burn on off-chain transactions. Notably, much focus is on Binance, the world’s largest crypto exchange that hosts the largest LUNC daily trading volumes.
Consequently, Binance Chief Changpeng Zhao, CZ, in response to the calls by the community, has proposed an opt-in model with a 3 step implementation process. While some have lauded the gesture from the exchange as an equitable compromise, others like LUNC DAO, a community validator, have called out the Binance chief for proposing a plan they believe he knows will never work.
Yesterday CZ posted this article: https://t.co/0wd7kDE5ak
A man as intelligent as CZ fully understands that an "opt in" process for the 1.2% tax has a near zero probability of working. The $LUNC Community already voted for the universal application of the 1.2% tax
My thoughts: pic.twitter.com/znn75EyPsM
— 🔥🙏 𝕃𝕌ℕℂ 𝔻𝔸𝕆 🙏🔥 (@LUNCDAO) September 24, 2022
Despite the split narrative of outrage and support for the CZ proposal within the LUNC community, the undisputed fact remains that support of the burn by Binance could significantly help the community achieve its goals faster so long as the exchange continues to host such volumes.
This will be slightly different for individuals in different time zones from me: 00:00 – 23:59
1.2% burn tax update:
— LUNC Burn (@LunaBurn_13) September 26, 2022
Notably, reXx of the Terra Rebels has urged the community to remain calm and united despite the split opinions on the Binance opt-in implementation.
#LUNC community. Please remain calm and level headed. There is absolutely no reason to push hate towards Binance or any CEX at that. The behavior coming from the $LUNC community is not a good reflection of what we are. United we stand, divided we fall. Stay positive community.
— reXx™ (@reXxTerraRebels) September 24, 2022