Binance Completes Second Terra (LUNA) Airdrop for LUNC and USTC Holders: What You Need to Know

Big news for Terra Classic ($LUNC) and TerraClassicUSD ($USTC) holders! Binance, one of the world’s leading cryptocurrency exchanges, has officially announced the completion of the second distribution of Terra’s new $LUNA tokens. This airdrop is for those who held LUNC and USTC during the tumultuous period of the Terra ecosystem collapse earlier this year. If you were affected, this update is crucial for you!

What’s the Deal with this Airdrop?

This airdrop is Binance’s second round of distributing the new $LUNA tokens to users who held onto the older tokens, $LUNC and $USTC, during the Terra ecosystem’s dramatic events. To ensure fairness, Binance took snapshots of user holdings at two critical points:

• Before the Collapse: May 7th. This snapshot captures users who were holding LUNC and USTC *before* the major crash.
• After the Collapse: May 26th. This snapshot captures users who held tokens *after* the ecosystem had already begun to unravel.

Why two snapshots? Because the value of LUNC and USTC changed drastically after the collapse. Those who held tokens before and after experienced different levels of impact, and the airdrop distribution is designed to reflect this.

Understanding the Terra Ecosystem Collapse and Rebirth

Let’s quickly recap what happened with Terra. Earlier in 2023, the original Terra ecosystem experienced a severe collapse. This led to a rebranding and a fork in the blockchain:

• Terra Classic: This is the original, collapsed ecosystem, now known as Terra Classic, with its tokens $LUNC and $USTC.
• Terra (New LUNA): A new blockchain was created, taking over the ‘Terra’ name and launching a new $LUNA token.

One of the major issues during the collapse was hyperinflation. The circulating supply of LUNC skyrocketed from 340 million to a staggering 6.9 trillion tokens! To combat this massive inflation and try to restore some value, the LUNC community implemented a 1.2% tax burn on all on-chain transactions.

Binance’s Support for the Terra Classic Community

Binance has shown itself to be a supporter of the Terra Classic community’s efforts to revive the ecosystem. A key example of this support is Binance’s commitment to token burns. In fact, Binance has conducted multiple burns of $LUNC tokens, effectively removing them from circulation and reducing the massive supply.

Let’s look at some of Binance’s burn initiatives:

• Third Batch of Burns: Binance destroyed a massive 2.5 billion LUNC tokens in a single transaction! At the time of the burn, these tokens were worth approximately $660,000.
• First Burn: CEO Changpeng Zhao revealed that Binance’s first burn amounted to roughly 5.6 billion LUNC tokens, valued at over $1.8 million at the time.

These burns are a direct response to the $LUNC community’s proposal to burn trading fees generated on the Binance platform. By burning tokens, Binance is actively contributing to the deflationary efforts of the LUNC community.

A Potential Solution for USTC?

The problem of the uncollateralized TerraClassicUSD ($USTC) is a complex one. However, there’s hope on the horizon. Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, has proposed a potential solution to recapitalize USTC. His proposal involves a combination of economic strategies, including:

• Quantitative Easing and Tightening: These are monetary policies that can be used to manage the supply of USTC.
• Partitioned Pools: This is a more technical solution that could help manage liquidity and stability.
• Other Solutions: Andersen’s proposal likely includes a range of other mechanisms to address the USTC issue.

While there’s no guarantee of success, such proposals indicate that developers are actively working on solutions to restore value to USTC.

What About Future LUNA Airdrops?

Binance has stated that this second airdrop isn’t the end of the story. They plan to continue distributing the remaining $LUNA airdrops to eligible users between December 2022 and June 2023, when applicable. The entire distribution process is expected to span a considerable period – potentially 24 to 48 months.

Important Note: Binance has also clarified that they will *not* be making further announcements regarding these future airdrops. So, keep an eye on your Binance account for any potential distributions.

Are You Eligible for the Airdrop? Important Restrictions

It’s crucial to note that not everyone is eligible for this airdrop. Binance has explicitly stated that:

• Users in the United States are not eligible.
• Sanctioned entities are also not eligible.

If you are in these categories, you will unfortunately not receive the $LUNA airdrop.

The Terra Classic Community’s Push for Adoption

Despite the challenges, the Terra Classic community remains resilient and is actively working towards greater adoption of LUNC and USTC. One notable example of this is the petition started by the community to get LUNC listed on Coinbase, another major cryptocurrency exchange. This demonstrates the community’s determination to revive the ecosystem and increase the accessibility of Terra Classic tokens.

In Conclusion: A Step Forward for Terra Classic Holders

Binance completing the second LUNA airdrop is a significant step in the ongoing process of compensating users affected by the Terra ecosystem collapse. While the road to recovery for LUNC and USTC is still long and uncertain, Binance’s continued support, along with community efforts and proposed solutions, offers a glimmer of hope. If you were holding LUNC or USTC during the critical period, make sure to check your Binance account for the distributed $LUNA and stay informed about further developments in the Terra Classic ecosystem.