Terra Classic Proposal Seeks Approval to Add Two New Binance Wallets to Burn Tax Exemption List
A new governance proposal on Terra Classic is seeking community approval to add two newly established Binance wallets to the network’s existing burn tax exemption list. The request would allow Binance to continue managing its LUNC assets between its internal wallets without triggering the standard on chain burn tax.
The proposal comes following a recent security incident affecting Binance. As part of its precautionary security measures, the exchange is moving funds to newly established wallets, including a new cold wallet and hot wallet for Terra Classic assets.
Importantly, there is no indication that Binance’s previous Terra Classic wallets were compromised. The wallet changes are precautionary measures intended to strengthen security and provide additional protection for customer assets.
Why Does Binance Need Two New Wallet Exemptions?
Terra Classic applies a burn tax to eligible on chain transactions. However, certain Binance-owned wallets have already received exemptions to allow the exchange to move funds between its own approved wallets without paying the burn tax.
This arrangement helps Binance manage its internal wallet operations while keeping the normal burn tax requirements in place for other transactions.
Now, Binance needs the same arrangement for two newly established wallets.
The proposal requests that both wallets receive the same exemption treatment as previously approved Binance wallets.
Previous Binance Wallet Exemption Was Approved in 2025
This is not the first time Terra Classic governance has approved additional Binance wallets for burn tax exemptions.
On May 7, 2025, Proposal 12175, titled “Add Additional Binance Wallets to BurnTax Exemption,” successfully passed community governance.
That proposal added three additional Binance wallets to the exemption list, allowing the exchange to manage internal transfers without triggering the burn tax.
The latest proposal follows the same approach. It does not introduce a new exemption policy or change the existing burn tax rules. It simply requests approval for two more Binance wallets.
Previous governance proposal:
Proposal 12175 – Add Additional Binance Wallets to BurnTax Exemption
Two New Binance Wallets Proposed
The proposal identifies the following addresses for inclusion in the existing burn tax exemption arrangement.
New Binance Cold Wallet
terra1lsmt5a8vqqus5fwslx8pyyemgjtg4y6uvj5ry9
New Binance Hot Wallet
terra1tf9mt0tt84mn26zccazpeduf7axvw6a7yy9u7x
Both wallets are intended to support Binance’s internal asset management and security operations within the Terra Classic network.
What Would This Proposal Change for LUNC?
If approved, the two new Binance wallets would receive the same burn tax exemption treatment as the previously approved Binance wallets.
In simple terms, Binance would be able to move LUNC between its approved internal wallets without triggering the burn tax on those transfers.
However, this exemption is limited to eligible transfers between approved Binance wallets. It does not mean that all Binance transactions or regular LUNC transfers would become tax exempt.
The existing burn tax rules would continue to apply to other transactions as usual.
Why Is This Important for Terra Classic?
Binance has been a long standing supporter of the Terra Classic ecosystem, including through its continued contributions to LUNC burns.
Allowing the exchange to update its wallet infrastructure while maintaining the existing exemption arrangement helps support its internal security and asset management operations.
The proposal also maintains the same approach established by previous community governance decisions, rather than introducing a broader change to the network’s burn tax system.
What Happens Next?
The proposal is now being discussed on the Terra Classic Discourse forum. Community members can review the request and share their opinions before the governance process moves forward.
If approved, both newly established Binance wallets will be added to the existing burn tax exemption list.
For LUNC holders, the key point is that this proposal is about Binance’s internal wallet management. It does not remove the burn tax for regular users, change the existing tax rate, or introduce a new burn mechanism.
