Binance announces support for the Terra Classic (LUNC) network upgrade scheduled for February 28th at 22:00 (UTC). The v.1.1.0 upgrade includes changes to the network aimed at addressing concerns about Binance’s token burn.
Binance Confirms Support For Terra Classic (LUNC) Upgrade v.1.1.0
The upgrade occurred at the Terra Classic block height of 11,734,000. According to the official press release, Binance announced that from 21:00 (UTC) on February 28, it will suspend deposits and withdrawals on the LUNC network. This ensures the safety and integrity of users’ funds during the upgrade process. The exchange also appointed that its network deposit and withdrawal services will be restored once it confirms that the network is stable again. In any case, the development will not affect trading for LUNC and TerraClassicUSD (USTC) on the platform.
Why the Upgrade is so Important?
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.
It is worth noting that Binance suspended regular monthly donations to the LUNC burn campaign last December after passing a proposal aimed at reissuing 50% of the burned tokens, including 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 was concerned about reissuing the token after the burn, so they set some conditions for resuming the burn. In response, on February 14, LUNC developer Edward Kim presented three signal proposals, two of which are designed to meet Binance’s requirements.
After a positive community vote on these proposals, a network upgrade proposal was submitted over a week ago to integrate the proposed features. This implementation should meet Вinance’s requirements, and the exchange may resume its burn contribution.
It is important to note that Вinance is the most significant contributor to the LUNC burn initiative, with up to 20.1 billion tokens accounting for 50.7% of the cumulative burn of 39.6 billion tokens.
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