Binance, a leading cryptocurrency exchange, has announced the completion of Terra’s ($LUNA) second airdrop distribution to eligible users who held Terra Classic ($LUNC) and TerraClassicUSD ($USTC) at the time of the snapshots both before and after the Terra ecosystem’s collapse in May.
According to an announcement made by the exchange, the snapshots were taken on May 7, prior to the collapse of Terra, and on May 26, following the collapse of the cryptocurrency’s ecosystem. The amount of $LUNA distributed to users who held before and after the collapse varies significantly, as the value of Terra’s ecosystem tokens plummeted at the time of its demise.
The original Terra ecosystem collapsed earlier this year and was later rebranded as Terra Classic, while the Terra brand was taken over by a new, forked blockchain. When Terra’s ecosystem collapsed, its circulating supply increased from 340 million tokens to 6.9 trillion, and to combat the inflation, $LUNC supporters imposed a 1.2% tax burn on all network transactions.
Binance has been a supporter of token burns, and in its third batch of burns, it destroyed 2.5 billion tokens in a single transaction, permanently removing them from circulation. According to Binance’s pages, the $LUNC tokens were worth nearly $660,000 at the time of the burn and were burned in response to the $LUNC community’s proposal to burn trading fees on-chain.
According to reports, Binance CEO Changpeng Zhao stated that the exchange burned approximately 5.6 billion LUNC tokens on its first burn, which were worth more than $1.8 million at the time.
Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, has proposed a solution to the uncollateralized TerraClassicUSD token problem. The developer’s proposal would recapitalize USTC through a combination of quantitative easing and quantitative tightening, as well as the use of “partitioned pools” and other solutions.
The exchange also revealed that it will distribute the remaining $LUNA airdrops to users from December 2022 to June 2023, when applicable, with the entire distribution expected to take place over a 24 to 48-month period.
However, the exchange will not make any further announcements about these airdrops. Users in the United States and sanctioned entities are not eligible for the airdrop, according to the exchange.
The Terra Classic community has been fighting for greater adoption, even starting a petition to be listed on cryptocurrency exchange Coinbase.
