Exchanges blasted for ‘nothingburger PR’ articles on looming LUNC tax burn

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Last Updated on September 12, 2022 by Bitfinsider

Some cryptocurrency exchanges decided it would be a good idea to show their support for the upcoming Terra Classic (LUNC) burning mechanism as it became more and more popular. However, the crypto community soon replied, calling out the exchanges for what some believe to be public relations stunts.

Edward Kim, a member of the Terra community, proposed on September 1 to implement a 1.2% tax burn for each on-chain LUNC transaction in an effort to resurrect the cryptocurrency. A portion of the circulating supply will be permanently removed when the transaction tax is sent to a dead address. Following the proposal, the value of the LUNC token increased by 250% as the project’s hype began to materialize.

Due to this, the crypto exchanges KuCoin, Gate.io, and MEXC Global made the decision to publicly support the Terra community’s efforts to burn tokens. Some, however, criticized the discussions and voiced their displeasure with the statements.

Source: Twitter

The Terra researcher going by the alias FatMan questioned KuCoin about what they were doing to support the token burn given that the tax burn was implemented on-chain after posting an announcement to that effect. The researcher called the declaration “nothingburger PR post” and advocated taxing actual trades in its place.

Johnny Lyu, the CEO of KuCoin exchange, responded to the criticism by stating that their trading platform is unbiased and people-focused. He also added that “We always respect the communities’ choice and are happy to help them in the way we can. The same on the tax proposal.”

Gate.io has entered the debate by declaring that, if the plan is adopted, it “will implement the proposed on-chain burn on LUNC and USTC.” Following this, a community member called out Gate.io, criticizing their announcement as inaccurate and misleading. The user recommended people to avoid the exchange and switch to other exchanges that genuinely support the development of LUNC on the grounds that on-chain implementation is outside the purview of the exchanges.

MEXC Global organized a time-limited burning event for the LUNC coin, in contrast to other exchanges that simply seemed to support the burn verbally. From September 3 through September 17, the exchange promised to burn the spot trading commissions for LUNC/USDT. Back in May, MEXC helped Terra’s burning initiatives by holding a month-long repurchase and burn event to aid in LUNC’s resurgence.


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