Binance Becoming Serious To Implement Terra Classic 1.2% Tax Burn on Trading, Proposes Three New Steps To Burn LUNC

Binance’s Changpeng Zhao, CZ, Says LUNC 1.2% Burn Will Be Implemented On Spot Trading After These 3 Steps.

CZ expands on Binance’s roadmap to implement the 1.2% burn on all LUNA Classic (LUNC) spot trading activity.

In a blog post released Friday following an Ask Me Anything (AMA) session on Twitter where the Binance chief proposed a compromise to implementing the 1.2% burn on spot trading activity, CZ reveals how the exchange plans to implement it.

As per the blog post, it will be a 3 step process. In the first step, Binance will create an opt-in button to allow users to opt in to pay the 1.2% tax on their LUNC trading activity.

Secondly, once the users who opt-in account for 25% of the LUNC held on the exchange, the tax will kick in for users who opted to pay.

Finally, in step 3, once the opt-in accounts make up 50% of the total trading volume, the exchange will implement the tax on all trading activity.

However, it bears mentioning that there are conditions. 

“If the threshold for Step 2 cannot be reached within a month of the completion of Step 1, or falls back below the threshold in the future, we will remove the opt-in feature to keep to a simpler user-experience,” reads the blog post.

Notably, CZ’s proposal yesterday has been hailed by many in the Terra community as equitable and, if successful, could prove a big step forward for the community on its path to reducing LUNC supply. Binance continues to host the largest volume in terms of LUNC trading activity, with nearly $370 million in LUNC volume in the last 24 hours.

Wu blockchian the popular crypto media news source, writes:

“According to Binance, When the opt-in accounts reach a holding of 25% of the total LUNC held on Binance, we start to charge 1.2% tax for all opt-in traders when they trade LUNC. When reaching 50%, we will roll out the 1.2% trading tax for all LUNC trading.”

Since the community implemented the 1.2% LUNC tax burn proposal on Wednesday, over 950 million LUNC have been burnt. The supply remains at about 6.9 trillion, a long way from the 10 billion supply target. However, burns have increased as the days go by, with over 455 million burnt yesterday alone.