KuCoin, Gate.io and MEXC Global took the spotlight from community members as they expressed their support for the upcoming burning of LUNC transactions on the network.
As the upcoming Terra Classic (LUNC) record engine — formerly Terra (LUNC) — grew in popularity, some crypto exchanges thought it would be a good idea to show their support. However, the crypto community was quick to react, blaming the exchange for what some see as a PR stunt.
On September 1st, Edward Kim, a member of the Terra community, submitted a proposal for a 1.2% tax cut on every LUNC transaction on the network to revitalize the cryptocurrency. The transaction tax will be sent to the dead address, permanently removing part of the negotiable offer. After this offering, the LUNC token surged by 250% as the hype surrounding the project showed signs of life.
Because of this, cryptocurrency exchanges KuCoin, Gate.io, and MEXC Global have decided to express their support for the Terra community’s token burn efforts. However, some were unhappy with the announcements and called out the exchange names.
After KuCoin released an announcement that the exchange supports token burns, KuCoin was approached by a Terra researcher aka FatMan who asked what they would do to support them since tax burns are done on-chain. The researcher called the announcement a “Nothingburger PR post” and suggested taxing actual transactions instead.
In response to the criticism, Johnny Liu, CEO of the KuCoin exchange, told Cointelegraph that their trading platform is neutral and people-centric. “We always respect the communities’ choices and are happy to help them in any way we can. The same goes for the tax proposal,” Liu added.
Gate.io also jumped into the fray when the exchange announced it would “implement the proposed listing online on LUNC and USTC” once the proposal was approved. In response, a community member called out Gate.io, calling its announcement false and misleading. The user argued that implementation on the network does not fall under the purview of exchanges and urged others to boycott the exchange and switch to other exchanges that genuinely support LUNC’s growth.
Gate.io Marketing Director Tom Young had his say on the matter. Yang told Cointelegraph that their exchange is committed to the communities of all projects listed on the trading platform, including LUNC. According to Yang, “USTC and LUNC trades made on the Gate.io exchange are not online activities.” The chief executive said no taxes are levied locally and on futures trading on their platform.
See also: Terra rose from the dead? LUNA price up 300% in September
Unlike other exchanges that only seemed to support the burning with words, MEXC Global held a limited-time event to burn the LUNC token. The exchange has promised to reduce the commission for LUNC/USDT spot trading from September 3rd to 17th. Back in May, MEXC supported Terra’s burn efforts by hosting a month-long takeover and burn campaign to help LUNC’s resurgence. Despite their efforts, the exchange could not escape criticism, with a member of the community calling for the exchange to be burned permanently.
Disclaimer: This article was updated with a response from Gate.io. Cointelegraph reached out to MEXC Global but received no response.