As the Terra Classic (LUNC) burning mechanism gained more publicity, some cryptocurrency exchanges thought it would be a good idea to express their support. However, the cryptocurrency community was quick to respond.criticizing exchanges for what some believe to be public relations stunts.
On September 1, Edward Kim, a member of the Terra community, submitted a proposal to implement a 1.2% tax for each LUNC on-chain transaction, in an effort to revive the cryptocurrency. The transaction tax will be sent to a dead addresseliminating part of the supply in circulation permanently. Following the proposal, the LUNC token soared 250%since the hype surrounding the project showed signs of life.
Because of this, cryptocurrency exchanges KuCoin, Gate.io, and MEXC Global decided to express their support for the Terra community’s token burn efforts. However, some were not happy with the announcements, thus criticizing the exchanges..
After posting an announcement to express that the exchange supports token burning, KuCoin was called by Terra’s pseudonymous researcher, FatMan, and asked what they are doing to support it, given that tax burn is implemented on-chain.. The researcher described the ad as a “nothing PR post” and suggested taxing the actual trades instead.
How are they “supporting” anything here, given that the burn tax will be applied on-chain? You cannot choose not to pay it. Applies to all deposit and withdrawal transactions. This is a public relations post in which they say nothing. Taxing actual *trades* would be newsworthy, but no big exchange is going to do that.
— FatMan (@FatManTerra) September 7, 2022
In response to criticism, Johnny Lyu, the CEO of the KuCoin exchange, told Cointelegraph that his trading platform is neutral and people-centric. “We always respect the choice of communities and are happy to help them where we can. The same goes for the tax proposal,” Lyu added..
Gate.io also weighed in: the exchange announced that it will “implement the on-chain burn proposal on LUNC and USTC” after the proposal is approved. Following this, a community member criticized Gate.io, describing your ad as erroneous and misleading. The user plot that on-chain implementation is not within the jurisdiction of the exchanges and urged others to boycott the exchange and move on to others who actually support the growth of LUNC.
Unlike the other exchanges that only seemed to support burning with words, MEXC Global held a limited time burn event for the LUNC token. the exchange got engaged to burn the spot trading fees of the LUNC/USDT pair from September 3 to 17. Back in May, MEXC supported Terra’s burn efforts by holding a month-long buyback and burn event to support the resurgence of LUNC.. Despite its efforts, the exchange was unable to avoid the spotlight of one critic: a community member, who demanded a permanent burn of the exchange.
Cointelegraph reached out to Gate.io and MEXC Global for comment, but received no response as of press time.
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