Several exchanges indicate interest in a 1.2% Terra LUNA Classic (LUNC) tax burn.
The move to implement a 1.2% tax burn for transactions involving Terra Luna Classic (LUNC) tokens has continued to receive support from popular centralized cryptocurrency exchanges.
Singapore-based cryptocurrency trading platform Bitrue is the latest centralized exchange to declare support for the 1.2% tax burn of LUNC. The exchange made this known in a blog post today, stating that the 1.2% tax burn will be implemented for all classic Terra ecosystem tokens, including LUNC, USTC, MINE, ANC, STT, ORION, and C2X.
According to Bitrue, the 1.2% tax burn will only be implemented in all on-chain transactions involving the listed cryptocurrencies.
As reported by TheCryptoBasic, the long-awaited 1.2% tax burn will be implemented on the Terra Classic network on September 20, 2022. Based on this, Bitrue stated that it would upgrade the wallets of the selected cryptocurrencies on September 19, 2022, in preparation for the 1.2% tax burn.
The exchange said it would halt the deposit and withdrawal of the tokens during the time of the upgrade, and the services will resume once the upgrade has been completed.
After implementing the tax burn, 1.2% of the transaction amount will be charged for all deposits and withdrawals of Terra Classic network tokens on Bitrue.
“Deposit transactions will be taxed by the Terra Classic (LUNC) network before it reaches Bitrue. The balance will be credited to your Bitrue account after the 1.2% tax deduction by the network. Withdrawals: Users will receive the withdrawal amount minus withdrawal fees charged by Bitrue and the 1.2% tax deduction by the network,” Bitrue said in a statement.
Exchanges to Implement 1.2% Tax Burn for LUNC Transactions
Following the development, Bitrue now joins the list of centralized exchanges interested in implementing the 1.2% tax burn for LUNC. Currently, eight exchanges have declared that they would support the proposal, including Bitrue, once it goes live.
The other exchanges include Binance, KuCoin, Huobi, Gate.io, MEXC Global, Lbank, and CoinInn. It is noteworthy that while some exchanges like Binance will only implement tax burn for on-chain LUNC transactions, Some exchanges have noted that the proposal would be implemented on both on-chain and off-chain LUNC transactions.
Kucoin, MEXC Global, and CoinInn will support both on-chain (deposits, withdrawals) and off-chain (Trading) LUNC transactions.
The 1.2% tax burn proposal aims to reduce the total supply of LUNC, thus boosting the crypto’s price. Interestingly, the initiative has been championed by holders of the crypto asset, who are dedicated to making themselves whole.
Aside from the burn plans, these investors have also implemented other initiatives to reduce LUNC circulating supply, including staking of the asset.