Crypto community condemns exchange over PR stunt on LUNC treasure burning
Recently, Edward Kim, a Terra (LUNC) community member, made a proposal that will help revive the digital resource. Kim proposed implementing a 1.2% tax for all LUNC transactions on the chain.
The collapse of the algorithmic stablecoin Terra and its ecosystem resulted in billions of dollars in losses. The entire crypto space was thrown into a state of confusion. Although many events emerged in the wake of the fall, the crypto community remains hopeful for the network.
Through careful planning and development strategy, a new ecosystem, Terra Classic (LUNC), is brewing. Following the roadmap, the network will soon have its burning mechanism which is currently gaining attention in the industry.
With the burning mechanism, the network will move transaction tax to a dead address. This will automatically remove part of the circulating supply permanently.
Proposal for LUNC Token burning
Kim’s suggestion has positively impacted the Terra Classic network as LUNC increased by approximately 250%. Furthermore, due to the growing sentiment about the network, some crypto exchanges are suddenly interested in the project. These include Gate.io, KuCoin and MEXC Global, which now wants to support the development of the burning mechanism of the Terra community.
For its part, MEXC Global went beyond what the other exchanges played. While stating its support, the central also had a limited time LUNC burn. The exchange also maintained that it would burn LUNC/USTC spot trading fees between September 3 and September 7 for the network.
But there have been mixed opinions about the reactions from the crypto exchange. Some community members have already called out to the exchanges after their posts to support the LUNC token burning process.
Kucoin receives criticism
Following the KuCoin announcement, Twitter user FatMan, a Pseudonym Terra researcher, criticized the exchange. The researcher labeled the post from KuCoin as a nothing-burger PR post.
He ridiculed the exchange about what the support will be, given that the tax incineration is completed on the chain. He replied that KuCoin should focus on taxing transactions, although no exchange can do that.
KuCoin CEO Johnny Lyu responded to the criticism by saying that the firm is user-focused and neutral. Lyu mentioned that KuCoin would respect the opinion of the Terra community. He reiterated that they are still available to help, even with the tax proposal.
Community member advised users to cloud Gate.io
Similarly, Gate.io had announced that with the approval of the proposal, the exchange would implement LUNC and USTC on-chain burn. However, another community member had called out Gate.io over the announcement.
The member said the statement made by the stock exchange was wrong and could mislead people. He claimed that implementation of the burning mechanism is outside the stock exchange’s jurisdiction.
Therefore, he advised investors and users to stick to other platforms that support the growth of LUNC while avoiding Gate.io.
Featured image from Entrackr, chart from TradingView.com
