Binance Backs Terra Classic’s Next Big Move: What You Need to Know About the $LUNC Network Update

Heads up, crypto enthusiasts! If you’re holding onto Terra Classic ($LUNC), USD Terra Classic ($USTC), or Anchor Protocol ($ANC) on Binance, you’ll want to pay attention. The leading cryptocurrency exchange has officially announced its support for the upcoming Terra Classic network update. Let’s dive into what this means for you and the future of $LUNC.

What’s Happening with the Terra Classic Network?

Get ready for epoch 15,029! This is the moment the Terra Classic network will undergo a significant update, primarily focused on reducing seigniorage rewards to a flat 0%. Think of seigniorage as the profit made from issuing currency. This change is a key part of the community’s efforts to reshape the token’s economics.

Binance’s Role: Suspension of Deposits and Withdrawals

To ensure a smooth transition, Binance will temporarily suspend deposits and withdrawals for $LUNC, $USTC, and $ANC via the Terra Classic network. Mark your calendars: this pause will kick in around 03:50 UTC on January 14th. The exchange anticipates the update process to take approximately three hours.

Key Dates and Times:

• Deposit/Withdrawal Suspension: Early January 14th, 03:50 UTC
• Expected Update Duration: Approximately 3 hours

What Does This Mean for Binance Users?

Good news! Binance will handle all the technical complexities of this upgrade for users holding $LUNC, $USTC, and $ANC in their Binance accounts. You don’t need to do anything on your end during the update. Binance also mentioned they will keep an eye on the market and adjust Terra Classic network withdrawal fees as needed.

When Will Trading Resume?

Binance will re-enable deposits and withdrawals once they’ve confirmed the updated network is stable. Keep an eye on their official channels for updates, although they won’t be sending out individual notifications about the resumption.

A Quick Recap: The Terra Ecosystem Journey

For those who might be new to the story, the original Terra ecosystem faced significant challenges earlier in the year. It was subsequently rebranded as Terra Classic, while a new, forked network took over the Terra name. The collapse led to a massive increase in $LUNC’s circulating supply – from 340 million to a staggering 6.9 trillion tokens. To combat this inflation, the dedicated $LUNC community implemented a 1.2% tax burn on all on-chain transactions.

Binance’s Commitment to the $LUNC Community

Binance has been actively supporting the community’s efforts to reduce the $LUNC supply. Their token burn program has seen billions of tokens permanently removed from circulation. In just one recent transaction, they burned a whopping 2.5 billion $LUNC, worth nearly $660,000 at the time! This initiative directly responds to the $LUNC community’s proposal to burn trading fees generated on the exchange.

Diving Deeper into the Upgrade: What’s Changing?

This upcoming upgrade is more than just a routine maintenance. Here’s a breakdown of the key changes:

• Seigniorage Reward Policy Deprecation: This is the headline change, aiming to prevent burned $LUNC from being reminted.
• Increased Network Gas Fees: Get ready for a fivefold increase in gas fees. This move is designed to boost the Community Pool’s funds and enhance rewards for validators and stakers.

Why Deprecate Seigniorage Rewards?

The community recognized that the seigniorage incentive had become ineffective, providing minimal income to the Community Pool while potentially causing more harm than good. This deprecation is a strategic move to streamline the token’s economics.

Looking Ahead: Community Efforts for Broader Adoption

The Terra Classic community isn’t stopping here. They’re actively pushing for wider adoption of $LUNC, including a petition to get the token listed on Coinbase. This highlights the community’s strong belief in the potential of Terra Classic’s revival.

In Conclusion: A Significant Step for Terra Classic

Binance’s support for this network upgrade is a significant endorsement for the Terra Classic community and their efforts to revitalize the $LUNC token. The reduction of seigniorage rewards and the increase in gas fees are strategic decisions aimed at creating a more sustainable and rewarding ecosystem. While the temporary suspension of deposits and withdrawals might cause a brief pause, it’s a necessary step for the long-term health of the network. Keep an eye on Binance’s announcements for the resumption of trading and continue to follow the developments within the vibrant Terra Classic community.