Terra Classic (LUNC), the remnants of a former top 5 crypto project, is rallying hard on the news that Binance will be implementing a fee-burning mechanism in support of a LUNC community proposal.
Terra Classic is the rebranded version of Terra (LUNA), the project that wiped out over $40 billion in market cap after essentially going to zero when its stablecoin UST lost its peg.
Binance CEO Changpeng Zhao said that the exchange, which is the world’s largest in terms of volume, will be burning all LUNC fees from its Binance USD (BUSD) and Tether (USDT) trading pairs.
“We have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance.
Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’.
This way we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”
Originally, Zhao said he wanted to add an “opt-in” button for the mechanism, but changed his mind after receiving feedback from the community.
Following the announcement, LUNC rallied from $0.000181 to $0.00033 in a few hours, representing gains of just over 82%. LUNC also has a sizable 24-hour trading volume of $2.3 billion, significantly bigger than other top crypto assets like Solana (SOL) or Binance Coin (BNB).
However, LUNC is essentially 100% down from its all-time high of $119, and its founder Do Kwon is currently being sought by Interpol after South Korean authorities requested a red notice to be placed on him for his role in the Terra ecosystem’s collapse. Interpol has since complied with the order and is now seeking his arrest.
Terraform Labs, the development company behind Terra, is also being hit with a lawsuit from users who say the project operated like Ponzi scheme, specifically in regards to its UST stablecoin.
A Terraform Labs spokesperson issued a statement to The Daily Hodl, calling the claims meritless.
“Terraform Labs will not comment on pending litigation other than to say it believes the claims are meritless and it intends to defend against them fully.”
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Featured Image: Shutterstock/Pattern Trends
