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Top crypto exchange Binance has announced it will temporarily suspend deposits and withdrawals for LUNC, USTC and ANC via the Terra Classic (LUNC) network on Jan. 14 at 3:50 a.m. UTC. This is because of the Terra Classic (LUNC) network upgrade brought on by the community's latest proposal.
#Binance will support the Terra Classic $LUNC Network Upgrade.https://t.co/QA6akTco97
— Binance (@binance) January 13, 2023
The Terra Classic (LUNC) network upgrade is scheduled to take place at epoch 15,029, or around Jan. 14, 4:50 a.m. UTC, and will take about three hours. While deposits and withdrawals will be temporarily suspended, the trading of LUNC, USTC and ANC will not be affected during the network upgrade.
As stated on its website, Binance says it will review and adjust withdrawal fees for LUNC, USTC and ANC via the Terra Classic (LUNC) network in line with market conditions, where applicable.
Deposits and withdrawals for the Terra Classic (LUNC) network will be reopened once the upgraded network is deemed stable, but users might not get any further notification on this.
Details of community proposal
The proposal at the heart of the Terra Classic network upgrade seeks to deprecate the seigniorage reward policy by effectively prohibiting LUNC reminting from burns, as well as increase gas fees by five times (5x) to capitalize the community pool and increase validator or staking rewards.
According to the proposal, the on-chain burn rate of LUNC has significantly decreased in the last four weeks and is expected to decrease further as Binance reduces burns.
As reported by U.Today, following recent developments where the LUNC burn is being reminted as a development fund, Binance announced that it will start to burn 50% of the LUNC spot and margin trading fees instead of 100%.
Given the drop in the burn rate, the LUNC community proposes a fivefold increase in gas fees. "At current market value, gas fees on Terra Classic is 18.42x cheaper than Terra 2.0. Even after increasing the gas fees by 5x, Terra Classic gas fees will still remain 3.68x cheaper than Terra 2.0," which makes the case for the increase in gas fees.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov