With the upcoming Terra Classic (LUNC) burning protocol reportedly gaining popularity, certain cryptocurrency exchanges have taken the decision to show their support to it but the cryptocurrency community have called out exchanges on account of public relation stunts, as reported by Cointelegraph.
According to Cointelegraph, in September, Edward Kim, member, Terra community, gave a proposal for implementation of a 1.2% taxation burn for every on-chain LUNC transaction with the aim to revive the cryptocurrency. After the transaction tax is sent to a nonexistent address, part of the circulating supply will be removed permanently. Post the proposal, value of the LUNC token increased by 250% with the reported hype around the project showing signs of growth. Cryptocurrency exchanges such as KuCoin, Gate.io and MEXC Global have decided to show their support for the token-burning attempts of the Terra community. However, certain cryptocurrency members expressed their dissatisfaction with the announcements, and called out exchanges.
On the basis of information by Cointelegraph, post the announcement of the exchange supporting the token burn, KuCoin was called out by Terra researcher FatMan, on account of how do they plan to support it as the tax burn is implemented on-chain. FatMan used the phrase “nothingburger PR post” to describe the announcement, and suggested taxation of actual trades. Johnny Lyu, CEO, KuCoin exchange, expressed support for its platform by describing it as neutral and people-oriented.
Moreover, Cointelegraph noted that Gate.io exchange made the announcement of implementing the proposed on-chain burn on LUNC and USTC, following the approval of the proposal. However, a community member called out Gate.io to describe its announcement as wrong. MEXC Global conducted a time-based burning event for the LUNC token, as the exchange guaranteed the burning of spot trading fees for LUNC/USDT. In May, MEXC showed support towards Terra burning efforts through a month-long buyback and burn event, for trying to ensure the revival of LUNC.