The upgrade introduces features aimed at addressing Binance’s concerns about token burns.
Binance announced support for the Terra Classic (LUNC) network upgrade scheduled for Feb. 28 at 22:00 (UTC). The upgrade, featuring v.1.1.0, incorporates modifications to the network that aim to address Binance’s apprehensions regarding token burns.
The upgrade occurred at the Terra Classic block height of 11,734,000. According to an official press release, Binance said it would pause deposits and withdrawals for the LUNC network from Feb. 28 at 21:00 (UTC). This ensures the safety and integrity of users’ funds during the upgrade process.
The exchange noted that deposits and withdrawal services for the network would be restored once they have confirmed that the network is once again stable. Notwithstanding, the development will not impact trading for LUNC and TerraClassicUSD (USTC) on the platform.
The Significance of Upgrade v.1.1.0
The Terra Classic upgrade v.1.1.0 comes on the heels of the passing of Proposal 11367, which sought the community’s consent to implement the network upgrade. The upgrade introduces features such as a burn tax split, a ban on reminting of burned tokens, and a tax exemption list. These features address concerns raised by Binance regarding token burns.
Recall that Binance suspended its periodic monthly contribution to the LUNC burn campaign last December following the passing of a proposal that sought to re-mint 50% of burned tokens, including those of Binance. The exchange halted its burns till March and noted that it would burn 50% of LUNC trading fees instead of the initially-promised 100%.
Binance put forth several conditions under which it would resume its burns, as it was concerned about reminting its tokens after being burned. In response, LUNC developer Edward Kim presented three signal proposals on Feb. 14, two designed to meet Binance’s requirements.
Following the community’s affirmative vote on these proposals, the network upgrade proposal was introduced over a week ago to incorporate the suggested features. This implementation was intended to meet Binance’s requests and likely lead to the exchange resuming its burn contribution.
It is important to note that Binance is the most significant contributor to the LUNC burn initiative, having incinerated up to 20.1 billion tokens, which represent 50.7% of the total cumulative burn of 39.6 billion tokens.