A new Terra Classic proposal aims to burn over 899 million LUNC previously reminted by the community shortly after Binance had initially burned them.
The Terra Classic community has created Proposal 11582, a new proposal to once again incinerate over 899 million LUNC tokens initially burned by Binance.
These tokens, currently worth $82K+ against prevailing rates, were previously reminted by the community through a series of past proposals that aimed to increase the community pool funds.
Binance did not take the reminting process favorably, leading to a suspension of burns last December. The exchange only agreed to reintroduce its LUNC burns once the community enacts measures to desist from reminting burned tokens.
Binance resumed burns in March following the removal of the reminting policy, but previously- reminted tokens were not burned.
In the new proposal submitted by community member Powski, the LUNC community aims to burn these reminted tokens and restore trust with Binance and other stakeholders.
Based on the analysis, it has been calculated that 899,224,538.5 LUNC tokens were reminted from the funds Binance sent to the Burn Wallet. The proposed solution suggests transferring this amount from the Community Pool to the Burn Wallet.
To communicate the intentions and solutions put forth by this proposal, Powski plans to deliver a statement to Binance.
The statement acknowledges the inappropriateness of using the reminting mechanism without the approval of third parties like Binance. It outlines the actions taken by the community to rectify the situation.
Through the proposal, Powski emphasizes the importance of preventing similar issues in the future and expresses the commitment to the original 100% Buy-Back-And-Burn arrangement between LUNC and Binance.
LUNC Community Reacts
Proposal 11582 is already up for voting, and the governance process is set to end in a week. So far, the proposal has not passed, with most validators showing apathy.
While no validator has voted “No,” only two have chosen “Yes.” These two are the JESUSisLORD validator, operated by community member Christopher, and the Classy’s Sphere validator, manned by community influencer Classy. The majority of votes have gone to “No with Veto.”
Classy recently took to Twitter to throw his weight behind the proposal, emphasizing its importance. He acknowledged that the community should never have begun reminting tokens. Community members such as reXx have proposed periodic burns of the tokens instead of incinerating them all at once.
Possible Impact on Terra Classic
Although the proposal is not intended to support LUNC’s price action, its implementation will bolster the ongoing burn campaign. Incinerating 899 million tokens at once will further reduce the asset’s circulating supply, providing support for the revitalization plan and the journey to $1.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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