Binance burns 2.6 billion LUNC tokens, reaffirming its support for the Terra Classic ecosystem despite ongoing disputes in the community.
Binance has conducted its 11th Terra Classic (LUNC) burn, which involved an impressive 2.65 billion LUNC tokens. The latest Binance burn comes amid persistent ongoing disputes within the Terra Classic community due to differences in opinions regarding the rejuvenation plan.
On-chain data confirms that the burn involved 2,651,321,806 (2.651 billion) LUNC valued at $236.6K at the time of the transaction and occurred on July 1 at 15:12 (UTC). The exercise incinerated 50% of LUNC spot and margin trading fees from May 31 to June 29, according to Binance.
Following Binance’s burn, the total cumulative Terra Classic burn from all parties now stands at 65.3 billion LUNC. Of this figure, Binance’s total burns account for 35.53 billion tokens, representing over 54% of the cumulative burn.
The latest Binance burn comes exactly one month after the exchange incinerated 1.044 billion LUNC for May. The increase in June’s burn can be attributed to a rise in LUNC spot and margin trading volumes on the exchange.
Notably, this is the fifth burn exercise carried out by Binance since it resumed its LUNC burns after the suspension from December 2022 to February 2023. Total burns since the exchange resumed support now stand at 15.1 billion LUNC.
LUNC Faces Internal Conflicts
The latest Binance burn comes despite ongoing internal conflicts faced by the Terra Classic community. One such conflict stems from the Terraport attack, which resulted in the loss of billions of LUNC in user funds.
As TerraCVita continues to make efforts towards relaunching Terraport, the Terra Classic community is divided into supporters of the development group and individuals, like reXx, who believe the group does not deserve a second chance, as it has allegedly been negligent with monitoring the stolen funds and taking responsibility.
Moreover, the proposed formation of a USTC team that would work on the USTC re-peg idea from Redline Drifter has been met with varied responses, with validators such as JESUSisLORD sternly opposing the idea.
In addition, pseudonymous LUNC developers Bilbo Baggins and Solid Snake presented a proposal to form a parallel team of engineers dubbed the “Six Samurai.” The team requested a budget of $116K for work they plan to carry out on Terra Classic for Q3.
This proposal has also faced criticism from community members, despite garnering support from others. The community eventually rejected the proposal.
The community was also divided on the latest Q3 proposal from the L1 Joint Task Force (L1JTF), which LuncBurnArmy (LBA), the team’s manager, submitted a week ago. The proposal, which sought a Q3 budget of over $116K for the team, was also rejected by the community.
Also, disputes emerged when community members accused LBA of leaking confidential information during negotiations held with centralized exchanges on the USTC re-peg plan. This led to a proposal seeking to remove LBA as manager of the L1JTF and subsequently disband the team. The community rejected this idea as well.
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