Binance Announces Support For Upcoming Terra Classic Upgrade

  • The update will take place at epoch 15,029, or around 04:50 UTC on Saturday.
  • During this period, deposits and withdrawals of USTC, LUNC, and ANC will be disabled.

Binance, a cryptocurrency exchange, has announced today that it would facilitate the upgrade to Terra Classic (LUNC), a project that sprung from the defunct Terra ecosystem. The update is scheduled to take place this Saturday.

The update will take place at epoch 15,029, or around 04:50 UTC on Saturday, after the Terra Classic community voted to implement governance proposal 11242 to stop the re-minting of some of the burned LUNC tokens.

Deposits and Withdrawals To Be Affected

Binance, which handles more than half of LUNC’s trading activity and has been providing monthly LUNC burns to the Terra Classic community, estimates that the update will take three hours to complete. During this period, deposits and withdrawals of USTC, LUNC, and ANC will be disabled on the exchange, but trading will continue as usual.

In response to the precipitous drop in the on-chain burn rate of LUNC tokens over the previous four weeks, proposal 11242 was submitted at the start of the New Year with the intention of halting LUNC re-minting from burns by essentially lowering the seigniorage incentive policy to zero. Over two-thirds of the nodes in the network approved the plan.

Before and after each epoch, 10% of LUNC tokens were re-minted from the 0.2% burn tax and added to the community pool. A 0% seigniorage reward policy has been authorized, thus putting an end to LUNC re-minting.

Almost 90% of voters approved of the second portion of the plan, which sought to boost the network’s gas prices by 500% to support the community oracle pool in order to raise staking rewards.

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