The LUNC community continues to make progress towards the ultimate revitalization plan, as Binance declares support for the Terra Classic burn tax increase.
Binance has once again expressed its support for yet another Terra Classic network upgrade. In an official announcement today, the exchange disclosed its endorsement of a LUNC network upgrade that aims to raise the burn tax rate from the current 0.2% to 0.5%.
The implementation of the upgrade comes on the back of the passing of Proposal 11515 which introduced the burn tax increase.
The upgrade is scheduled to occur at the Terra Classic network block height of 12,902,400, which is expected to take place around 22:00 (UTC) on May 23. Binance has stated that it will temporarily suspend deposit and withdrawal functions for LUNC and TerraClassicUSD (USTC) starting at 21:30 (UTC) today to ensure a smooth network upgrade.
Although this upgrade will increase the burn tax rate from 0.2% to 0.5%, it’s worth noting that Binance’s wallets are exempt from the burn tax rate when carrying out internal transfers. However, the wallets will incur the tax when performing external deposits and withdrawals.
This feature was proposed by Professor Edward Kim in February to address concerns raised by Binance regarding the Terra Classic burn initiative. Binance provided a list of wallets to be included. As previously reported by The Crypto Basic, the feature was implemented with the Terra Classic network upgrade to v1.1.0 on March 1.
Despite the minimal impact on Binance’s whitelisted addresses, the recent decision to support the latest upgrade further highlights the exchange’s commitment to the LUNC community. Binance’s announcement comes just a few days after KuCoin revealed its support for the upgrade.
LUNC: The Road to $1
The upgrade signifies the Terra Classic community’s long-term vision to bolster LUNC’s revitalization efforts. The proposal to increase the burn tax rate to 0.5% aims to enhance the amount of LUNC burned with each transaction.
The burn campaign, central to the revitalization plan, has garnered widespread support, with contributions from all angles. Most recently, a newly-introduced project reportedly incinerated up to 1.3 billion Terra Classic within a two-week period as of May 13.
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