Exchanges criticized for ‘nothingburger PR’ posts on upcoming LUNC tax burn

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As the upcoming Terra Classic (LUC) burning mechanism grew in popularity, some crypto exchanges thought it would be a good idea to voice their support. However, the crypto community was quick to react, calling out the exchanges for what some believe are PR stunts.

On September 1, Edward Kim, member of the Terra community submitted a proposal to implement a 1.2% tax cut for every on-chain LUNC transaction in an effort to revive crypto. The transaction fee will be sent to a dead address, permanently removing some of the circulating supply. Following the proposal, the LUNC token soared 250%, as the hype surrounding the project showed signs of life.

For this reason, crypto exchanges KuCoin, Gate.io, and MEXC Global have decided to express their support for the token burning efforts of the Terra community. However, some were unhappy with the announcements, shouting the exchanges.

After posting an ad on Express that the exchange supports the token burn, KuCoin was called by pseudonymous Terra researcher FatMan, asking what they are doing to support him, given that the tax burn is implemented on-chain. The researcher described the ad as a “nothing burger PR post” and suggested taxing actual transactions instead.

In response to criticism, Johnny Lyu, CEO of the KuCoin exchange, told Cointelegraph that their trading platform is neutral and people-focused. “We always respect the choice of the communities and are happy to help them in any way we can. The same goes for the tax proposal,” Lyu added.

Gate.io has also jumped into the fray as the exchange announcement that it will “implement proposed chain burning on LUNC and USTC” after the proposal is approved. Following this, a community member called Gate.io, describing its announcement as erroneous and misleading. The user argued that on-chain implementation is not within the purview of exchanges and urged others to boycott the exchange and move to other exchanges that genuinely support the growth of LUNC.

Related: Terra back from the dead? LUNA price increases 300% in September

Unlike other exchanges that seemed to only support burning with words, MEXC Global held a limited-time burning event for the LUNC token. The exchange promised to burn spot trading fees for LUNC/USDT from September 3-17. In May, MEXC supported Terra’s burn efforts by hosting a month-long buyback and burn event in support of LUNC’s relaunch. Despite its efforts, the exchange still couldn’t dodge a critic’s crosshairs as a member of the community. required a permanent burn of the exchange.

Cointelegraph contacted Gate.io and MEXC Global but did not receive a response.



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