As the upcoming Terra Classic (LUNC) burning mechanism has gained more publicity, some crypto exchanges thought it would be a good idea to express their support. However, the cryptocurrency community reacted quickly, calling the exchanges what some believed to be a public relations stunt.
On September 1, Edward Kim, a member of the Terra community, submitted a proposal to implement a 1.2% tax burn for every on-chain LUNC transaction in an effort to revive crypto. The transaction tax will be sent to a dead address, permanently removing part of the circulating supply. Following the offer, the LUNC token surged 250% as the hype surrounding the project showed signs of life.
Because of this, crypto exchanges KuCoin, Gate.io and MEXC Global decided to express their support for the Terra community’s token-burning efforts. However, some were unhappy with the announcements, calling the exchanges.
After posting an announcement to express that the exchange was supporting Token Burn, Cuoco was called by pseudonymous Terra researcher Fatman, to ask what they were doing to support it, Given that the tax burn is implemented on-chain. The researcher described the announcement as a “Nothingburger PR post” and suggested taxing actual trades instead.
How are you “supporting” anything here, given that the burn tax will be forced on-chain? You can’t get out of it. This applies to all deposit and withdrawal transactions. Nothingburger PR Post. Taxing actual *trades* would be newsworthy, but no major exchange is going to do that.— Fatman (@FatManTerra) September 7, 2022
Responding to the criticism, KuCoin exchange CEO Johnny Lew told Cointelegraph that their trading platform is neutral and people-focused. “We always respect the choices of communities and are happy to help them in whatever way we can. The same is on the tax offer,” Liu said.
Gate.io also jumped into the fray when the exchange announced that it would “implement the proposed on-chain burn on LUNC and USTC” once the proposal is approved. Following this, a member of the community called Gate.io, Description of Its declaration is wrong and misleading. consumer argued That on-chain implementation is not under the exchange’s jurisdiction and urged others to boycott the exchange and move to other exchanges that actually support the development of LUNC.
related: Terra back from the dead? LUNA price up 300% in September
Unlike other exchanges that supported burns with words only, MEXC Global held a time-limited burning event for the LUNC token. Exchange Mortgage To burn the spot trading fee for LUNC/USDT from September 3rd to September 17th. Back in May, MEXC supported the terra burning efforts by holding a month-long buyback and burn event to support the revival of LUNC. Despite its efforts, the exchange was still unable to dodge a critic’s crosshairs as a community member. demanded A permanent burn from the exchange.
Cointelegraph contacted Gate.io and MEXC Global, but did not receive a response.