Binance Conducted Token Swap of LUNC, Resulting in Its Burning on Terra Luna Classic
In a surprising twist, the Terraform Labs team has put forth a plan to torch all Terra Luna Classic (LUNC) tokens generated from the community pool by Binance's LUNC burn mechanism—a move proposed by an anonymous group dubbed the "Six Samurai" in the proposal 11582. This proposal is currently up for a community vote.
The "Six Samurai" are calling to incinerate an impressive 899,224,538.5 LUNC tokens from the community pool, a proposal that has sparked controversy within the Terra Luna Classic community. Some are skeptical about burning such a substantial portion of LUNC from the community pool, fearing it might hinder spending proposals. On the other hand, there are those who advocate for the immediate burning of LUNC, albeit in smaller weekly increments, as it reflects ethical principles.
Currently, the voting results stand at 42% in favor of the proposal, with 58% voting "No with veto." This indicates that the community is wary of burning all LUNC from the community pool, as it could have a profound impact on future spending proposals. Only JESUSisLORD and Classy's Sphere validators have backed the proposal, while Happy Catty Crypto, T.MOM, and MoonRunners have declined it.
Classy Crypto, a validator from Classy's Sphere, has proposed a weekly burn of 50 million LUNC as a symbolic gesture for Binance's role in the LUNC burn campaign, considering that the community pool contains over 3 billion LUNC with 2.2 billion LUNC in it.
The Terra Luna Classic community has experienced a significant increase in total LUNC burn, reaching nearly 65 billion, thanks to the enthusiastic participation of various projects and validators in the LUNC burn initiative. However, Binance has recently reduced its contribution from 100% to 50% due to the discovery that the LUNC burn was being reminted and added to the community pool.
While the specifics of the "Six Samurai" proposal may not be explicitly mentioned in some sources, it's clear that the Terra Luna Classic community is generally receptive to burn strategies and supply reduction tactics, as demonstrated by sustained staking and burn rates. TFL's recent large burns align with this sentiment, though liquidity-focused proposals like USDC integration indicate a shift towards enhancing utility alongside deflationary measures. The absence of explicit dissent in available materials suggests that the general consensus favors aggressive burn strategies.
[1] Burns occur primarily via a 1.2% on-chain tax and Binance’s fee-burning model.
[2] Terraform Labs executed a 251 billion token burn in April 2025.
[3] Recent votes focused on establishing USDC/LUNC liquidity pools to boost DeFi utility and tax-generated burns.
[4] As of April 2025, nearly 410 billion LUNC had been burned, with estimates suggestingapproaching 65 billion by current numbers.
[5] Terraform Labs is currently embroiled in a $40B creditor claims process, creating regulatory uncertainties.
- The Terraform Labs team is contemplating torching the amounts of Terra Luna Classic (LUNC) tokens generated from the community pool by Binance's LUNC burn mechanism, a proposal initially proposed by the anonymous group known as the "Six Samurai."
- The ethical argument for Burning LUNC tokens, as proposed by the "Six Samurai," has gained traction in the Terra Luna Classic community, with some validators like Classy Crypto advocating for weekly burns as a symbolic gesture for Binance's role in the LUNC burn campaign.
- While the debate about the specifics of the "Six Samurai" proposal continues, the Terra Luna Classic community seems generally in favor of burn strategies and supply reduction tactics, as demonstrated by sustained staking and burn rates, recent votes on USDC/LUNC liquidity pools, and Terraform Labs' own history of large token burns.
