Upbit wants to divide the Terra classic (LUNC) transaction fees into three different plans.
Leading South Korea exchange Upbit has revealed that it will channel LUNC transaction fees charged during the Terra crisis into various initiatives.
Upbit noted that the total LUNC transaction fees it got during the Terra crisis were 239.13025970 Bitcoin (BTC), worth $4.58 million at the current exchange rate.
The exchange created a committee that will repurpose the LUNC transaction fees received during the collapse of Terra. According to a recent announcement, the transaction fees will be divided into short, medium, and long-term plans, as part of a larger effort to compensate for investors’ losses.
During the ugly Terra crisis, the LUNC fees were worth about $7.5 million. However, due to Bitcoin’s crash below $20,000, the value plunged to $4.58 million.
Upbit’s Plan for LUNC Fees
In a meeting held recently by Upbit’s Luna Fee Utilization Committee, part of the fees will be donated to organizations working towards providing relief for victims of the Terra collapse. Additionally, a part of the fee will be used to write a whitepaper stating the main reason behind the collapse. The paper will warn investors of other similar projects that may go live in the future.
The long-term plan involves the creation of a digital asset monitoring center to protect investors and foster fair market practices. Notably, Upbit’s initial plan was to return the fees to investors. However, during a meeting earlier this month, the Upbit’s Luna Fee Utilization Committee kicked against the move, saying it was not feasible.
Ongoing Initiatives to Compensate Terra Classic Investors
The collapse of the Terra ecosystem is still one of the most talked about events in the cryptocurrency space. Investors are yet to recover from the incident as they look to make themselves whole again via community burn and staking.
Several crypto-related companies have launched different initiatives for Terra Classic investors as part of the many ways to help the community revive the token from the dust.
As reported by TheCryptoBasic, Binance launched a burn mechanism that will burn LUNC fees on spot and margin trading pairs. In addition, Korbit said it would refund LUNC transaction fees to its users. However, the exchange has not disclosed how it intends to do so.