LUNC DAO accuses the Terra Rebels of scamming the Terra Classic community and jeopardizing Binance support.

In a tweet today, LUNC DAO, a popular Terra Luna Classic (LUNC) validator, has accused the Terra Rebels, an independent Terra Classic development group, of scamming community members with its latest funding proposal and jeopardizing Binance support.

The proposal in question saw the allocation of 937.5 million LUNC (~$150k) to the Terra Rebels for infrastructure development to make Rebel Station its Terra Station alternative independent of Terraform Labs. However, LUNC DAO says this funding has gone to community moderators and other non-technical members of the team, citing sources amongst ex-Terra Rebels members.

Notably, before now, the proposal has been the subject of intense criticism from influential members of the community who described it as vague. Duncan Day (@wrapped_dday), who left the group days before the proposal passed amongst many complaints against the group, had described the proposal as “backpay” in a tweet on Monday.

Meanwhile, the Terra Rebels have done little to debunk these claims, remaining vague about who receives a distribution and for what task. 

“… I don’t feel concerns the community as long as TR members are happy with said distribution to members capable of providing proof of work,” ClanMudhorn, a Terra Rebels admin, said in response to inquiries as previously reported.

TerraCVita,  a competing Terra Classic development group explaining why they voted against the proposal, alleged that it was a job a single developer could accomplish in a few days. The Terra Rebels said it would take 2 months.

While LUNC DAO alleges that Binance wants to end its LUNC burns due to the alleged scam, Binance is yet to indicate such a desire openly.

The leading crypto exchange kicked off LUNC trading fee burns in support of the community at the end of September, sacrificing millions of dollars in revenue to support the community. Notably, it set no clear condition on this support and is free to discontinue it at any time.

Binance is the largest contributor to LUNC burns, burning over 20 billion LUNC, almost twice as much as the on-chain burn tax parameter, which is the second biggest LUNC burner. Binance burns are now conducted monthly. The crypto exchange burned over 6 billion LUNC on December 1.

Many believe Binance support and that of other exchanges will be critical to reducing the 6 trillion LUNC supply.