Exchanges have been called out for posting “nothingburger PR” about the upcoming LUNC tax burn.
As excitement grew about the upcoming Terra Classic (LUNC) burning mechanism, some cryptocurrency exchanges thought it would be a good idea to show their support. But the crypto community responded quickly, calling out the exchanges for what some people think were PR stunts.
On September 1, Edward Kim, a member of the Terra community, proposed adding a 1.2% tax burn to every on-chain LUNC transaction as a way to bring the cryptocurrency back to life. The transaction tax will be sent to a dead address, taking that amount of money out of circulation for good. The LUNC token went up by 250% after the proposal, which showed that the hype around the project was still alive.
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Because of this, KuCoin, Gate.io, and MEXC Global decided to show their support for the Terra community’s efforts to burn tokens. But some people didn’t like what was said and brought up the exchanges.
After making an announcement that the exchange supports the token burn, an anonymous Terra researcher named FatMan called out KuCoin and asked what they were doing to support it, since the tax burn is done on-chain. The researcher called the announcement a “nothingburger PR post” and said that real trades should be taxed instead.
How are you “supporting” anything when the burn tax is going to be imposed on-chain? You have no choice but to do it. It applies to both making deposits and taking money out. PR post about nothing. If real trades were taxed, it would be newsworthy, but no big exchange will ever do that.
— FatMan (@FatManTerra) September 7, 2022
In response to the criticism, Johnny Lyu, the CEO of KuCoin exchange, told Asian Trade that their trading platform is neutral and focused on people. “We always respect what the communities decide, and we’re happy to help them in any way we can,” Lyu said.
Gate.io also joined the fight when it announced that it “will implement the proposed on-chain burn on LUNC and USTC” if the proposal is approved. After this, a community member called out Gate.io, saying that its announcement was wrong and misleading. The user said that on-chain implementation is not the exchanges’ responsibility and urged others to boycott the exchange and move on to other exchanges that really support LUNC’s growth.
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Terra is back from the dead, and the price of LUNA goes up 300% in September.
MEXC Global held a time-limited burning event for the LUNC token. The exchange promised to burn the spot trading fees for LUNC/USDT from Sept. 3 to Sept. 17. In May, MEXC helped Terra’s burning efforts by holding a buyback and burn event for a month to help LUNC get back on its feet.
