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

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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.

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Mark Brennan
Mark Brennan
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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