Leading cryptocurrency exchange KuCoin and Gate.io announced that they would support the 1.2% tax burn proposal for Terra Luna Classic (LUNC) tokens.
In a press release today, KuCoin said it would implement the feature on its platform once the proposal has been officially approved and implemented on the Terra mainnet.
“KuCoin will support the 1.2% tax burn when the proposal is officially approved and implemented on Terra Classic (LUNC) mainnet,” the exchange said.
However, if TerraForm Labs refuses to approve and implement the proposal, KuCoin said all services for the LUNC token would remain unchanged.
The exchange further urged LUNC investors to deposit the tokens to the trading platform before September 12, 2022, to avoid increasing deposit fees.
Gate.io said: “Gate.io will burn tax in the withdrawal of LUNC and USTC”
#TerraClassic tax burning proposal pushed #LUNC to the price peak at one stroke! ?https://t.co/8kWqgEeplL will burn tax in the withdrawal of LUNC and #USTC! ? ?
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Read more at: https://t.co/1nciF2S57k #Gate.io pic.twitter.com/HEcu0CwAKe— Gate.io (@gate_io) September 7, 2022
Terra LUNC Burn Proposal
It is noteworthy that the Terra community has been calling on TFL to burn part of the LUNC supply to compensate investors for the losses they incurred in early May 2022 after UST lost its peg to the dollar.
Despite investors’ wishes, TFL abandoned the LUNC project to launch a new chain and tokens, which it believed to be the perfect way to compensate investors. However, TFL’s effort was insufficient to compensate the Terra ecosystem collapse victims. In June 2022, investors voted that a 1.2% tax burn should be applied to all LUNC on-chain transactions. All LUNC tokens obtained via the tax initiative will be permanently destroyed, thus reducing the total supply of the asset class and ultimately bolstering its value.
Since the 1.2% tax burn proposal passed, the Terra team has not implemented the upgrade. This prompted investors to rely on individual burn efforts, where people are encouraged to send some LUNC tokens to an inferno address.
TFL has started showing interest in LUNC following a spike in the coin’s price due to individual community burn. The company recently rolled out a new upgrade for the old Terra chain.
Last week, an investor named Edward Kim proposed changing the LUNC tax parameter to include transactions conducted on exchanges.
“[…] Depending on the mechanisms that these trading exchanges use, such as moving from hot to cold wallets, that activity can and will be taxed and burned,” Kim said.
Upcoming 1.2% Tax Burn Proposal
In a recent tweet made by LUNC Burn, a Twitter account that tracks all individual burn activities, the 1.2% tax burn proposal will be available for voting on or before September 10, 2022. If the proposal passes, it will be activated on or before September 20, 2022.
At the time of writing, a handful of exchanges, including MEXC Global, have already stated that they will support the 1.2% tax burn for LUNC once it is implemented on the Terra mainnet.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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