The world’s largest crypto exchange, Binance, recently announced its support for the Terra Classic network upgrade, which increases the LUNC burn tax from 0.2% to 0.5%. This decision comes after Proposal 11515 was passed by the community and demonstrates that Binance CEO Changpeng “CZ” Zhao agrees with the move. The change is expected to help stabilize the LUNC price, which has experienced low burn rates in recent months.
The Terra Classic network upgrade, set to occur at block height 12902400, is expected to happen today at 22:00 UTC. However, current data indicates the upgrade could occur sooner. To facilitate the change, Binance will suspend LUNC and USTC deposits and withdrawals through the Terra Classic (LUNC) network from 21:30 UTC. It’s important to note that trading activity will not be impacted during the network upgrade, and users can continue to trade LUNC and USTC.
Once the Terra Classic network stabilizes after the upgrade, Binance will reopen deposits and withdrawals. Other crypto exchanges, such as KuCoin, have also shown their support for increasing the burn tax to 0.5%.
The Terra Classic community agreed to raise the burn tax in response to the dwindling LUNC price and burn rate since the tax was reduced to 0.2% last year. The 0.5% proposal is one of four different proposals aimed at increasing burn tax, staking rewards, whitelisting Dapps contracts, and boosting community pool funding.
Following several crucial upgrades, the LUNC price is currently trading at $0.000089, up 3% in the last 24 hours. The 24-hour low and high are $0.000086 and $0.000090, respectively. The question on the minds of many is whether the LUNC price will recover back to $0.0005.
Supporters of the higher burn tax argue that it will help stabilize LUNC’s value, while skeptics worry that it may lead to greater price fluctuations. It remains to be seen whether the increased burn tax will have the desired effect on LUNC’s price and burn rate, but the fact that Binance and other major exchanges are backing the change suggests that there’s confidence in the community’s decision.
In conclusion, the Terra Classic network upgrade, which includes increasing the LUNC burn tax to 0.5%, has received support from major crypto exchanges like Binance. While the upgrade is expected to help in stabilizing the LUNC price, concerns from skeptics about potential price fluctuations have not gone unnoticed. As always, it’s crucial that investors conduct thorough market research before making any investment decisions in the cryptocurrency sector.
Source: Coingape
