As word spread about the upcoming Terra Classic burning mechanism, several crypto exchanges assumed it would be a good idea to show their support. On the other hand, the crypto community reacted quickly, naming the platforms for what some presume to be public relations stunts.
In an effort to revitalize the crypto, Terra community member Edward Kim proposed a 1.2% tax burn for every on-chain transaction on September 1. The transaction tax will be delivered to a dead address, permanently removing a portion of the circulating supply. Following the proposal, the token increased by 250% as the project's hype began to take shape.
As a result, crypto platforms KuCoin, Gate.io, and MEXC Global have decided to show their support for the Terra community's token-burning actions. Some, however, were dissatisfied with the announcements, citing the exchanges.
After announcing its support for the token burn, KuCoin was called out by FatMan, a pseudonymous Terra researcher, who asked what they were doing to support it, given that the tax burn is utilized on-chain. The researcher called the announcement a "nothingburger PR post" and suggested instead taxing actual trades.
In response to the criticism, Johnny Lyu, CEO of the KuCoin, said that their platform is neutral and people-centered. "We always respect the communities' decisions and are happy to assist them in any way we can," Lyu added.
Gate.io has also joined the fray, announcing that it "will enforce the suggested on-chain burn on LUNC and USTC" if the proposal is approved. Following this, a community member criticized Gate.io, calling its announcement incorrect and misleading.
The user contended that on-chain implementation falls outside of the exchange's purview and prompted others to boycott it in favor of other exchanges that truly support LUNC's growth.
MEXC Global held a time-limited burning event for the LUNC token, in contrast to other exchanges that only appeared to support the burn with words. From September 3 to September 17, it promised to waive the spot trading fees for LUNC/USDT.
It supported Terra's burning efforts in May by holding a month-long buyback and burn activity to support the revival of LUNC. Despite all its efforts, the platform was still caught in the crosshairs of a critic who demanded that the exchange be permanently burned.