eToro Pledges Support For The Terra LUNA Classic (LUNC) 1.2% Burn Proposal.
eToro will apply tax to trading activities in a unique way.
Popular trading platform eToro, in a pinned post shared yesterday on the LUNC trading page, disclosed that it would be implementing the 1.2% tax burn on trading activity.
eToro based in Israel is known as a global multi-asset investment exchange that provides trading facilities in stocks, forex, crypto, etc.
Notably, following the tax parameter change, buyers and sellers will pay a 0.6% fee, respectively, on top of the standard 1% fee on the trading platform. As such, both parties share the 1.2% tax equally. It bears mentioning that eToro’s implementation of the burn on off-chain transactions is a welcome development for the community as several other exchanges have restricted the implementation to only on-chain transactions (deposits and withdrawals).
Notably, trading activity on exchanges commands more volume than on-chain activities. Consequently, exchanges’ implementing the tax on off-chain activities significantly improves the effectiveness of the burn initiative to reduce the LUNC supply.
“The tax and burn mechanism affects the operating costs associated with our offering of LUNC. As such, as of Sept 20, an operational fee of 0.6% will be added to eToro’s bid and ask prices for LUNC, on top of the standard 1% fee that is calculated when buying or selling crypto assets on eToro,” the firm writes in its post.
Unsurprisingly, the response to the development was positive as a member of the Terra Rebels, a group dedicated to Terra Classic network development, reXx took to Twitter to share the news. Several users welcomed the development as good news, hoping other platforms like Binance would take a cue from them. Additionally, users are beginning to seek out the platforms that are implementing the 1.2% tax burn on off-chain activities. As a result, we are likely to see an influx of LUNC investors and traders to these platforms.
— reXx™ (@reXxTerraRebels) September 20, 2022
Yesterday, leading crypto exchange Crypto.com also pledged support for the tax burn. However, unlike eToro, it restricts it to only deposits and withdrawals.
The tax parameter change is expected to go live moments from now after weeks of anticipation. The proposal plans to reduce the LUNC supply to 10 billion tokens in a bid to improve the asset’s value after the Terra ecosystem collapse in May saw it crash to zero.
It is currently trading at the $0.0003023 price point.