Leading cryptocurrency exchange Binance has announced it will support the latest Terra Classic ($LUNC) network upgrade, which is set to take place at epoch 15,029, and will set seigniorage rewards on the network to 0%.
According to an announcement the cryptocurrency exchange published, deposits and withdrawals for $LUNC, $USTC, and $ANC via the Terra Classic network will be suspended early January 14, at 03:50 UTC, with the network upgrade set to take approximately three hours.
The exchange added it will handle “all technical requirements involved for all users holding LUNC, USTC, and ANC in their Binance account,” and will review and adjust withdrawal fees on the Terra Classic network “in accordance with market conditions” when applicable.
Binance will then reopen deposits and withdrawals once it deems “the upgraded network to be stable,” without sending users a notification informing them of the move.
The original Terra ecosystem collapsed earlier this year and later rebranded to Terra Classic, while a new, forked blockchain took the Terra brand with it. When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2% tax burn on all transactions conducted on the network.
Binance has been supporting the network’s token burns, and in its third batch of burns it destroyed 2.5 billion tokens, permanently removing them from circulation in a single transaction. According to information from Binance’s pages, at the time of the burn, the $LUNC tokens were worth nearly $660,000 and were burned as a response to the $LUNC community’s proposal on burning trading fees on-chain.
Terra Classic’s new upgrade is set to deprecate the Seigniorage Reward Policy, in a bid to stop burnt $LUNC from being reminted and to quintuple network gas fees in a bid to “capitalize the Community Pool and increase Validator/Staking Rewards.”
The cryptocurrency’s community approved a proposal deprecating the seigniorage reward as it has “become a pretty defunct source of funding for the CP [Community Pool], and is causing more harm than benefit to the community.
As reported, the Terra Classic community, has been battling for increased adoption and even created a petition to get listed on cryptocurrency exchange Coinbase.
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