Binance to Burn Terra Luna Classic (LUNC) Spot and Margin Trading Fees.
Binance, the world’s largest exchange by 24-hour trading volume, has announced that it will implement a Terra classic (LUNC) burn mechanism to burn all trading fees for Terra Luna Classic (LUNC) tokens.
According to a blog post today, the leading cryptocurrency exchange said the burn mechanism would be implemented on all trading fees for LUNC spots and margin trading pairs.
#Binance will implement a burn mechanism to burn all trading fees on $LUNC spot and margin trading pairs. https://t.co/Depz9nYDVO
— Binance (@binance) September 26, 2022
Going forward, all trading fees for LUNC spots and margin trading pairs will be sent to the token’s burn address created by the community.
The exchange said the LUNC burn program, which started on September 1, 2022, will run until further notice. Notably, the initiative is in response to the recent community burn proposal that was recently implemented.
As reported by The Crypto Basic, Binance was first reluctant to implement the LUNC 1.2% tax burn on trading, as the exchange fears losing business and customers, so CEO Changpeng Zhao “CZ” brought up an alternative for the exchange by introducing a feature that allows users to choose to opt-in for the 1.2% trading fee.
After that, the exchange announced three steps to implement burns on trading, but today Binance said that they “ will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address.”
Furthermore, all trading fees on LUNC spots and margin trading pairs for the previous week will be incinerated every Monday at 00:00:000 (UTC). Binance will then update the burn transaction weekly report on Tuesdays.
The first batch of trading fees on LUNC spot and margin trading that will be burnt will be calculated from September 21, 2022, to October 2, 2022. However, LUNC spot and margin trading fees rebates toward the exchange’s Spot Liquidity Provider Program between September 21 and September 27, will be excluded from the burnt amount.
Additionally, all LUNC trading fees collected in other tokens line Binance Coin (BNB) will be immediately converted to LUNC on Mondays at 00:00:00 UTC, and burnt.
“LUNC burn mechanism will not affect BNB fee discounts, fee rebates, or any other form of fee adjustment or fee discount. Binance Spot Liquidity Provider Program will pause fee rebates toward LUNC spot and margin trading pairs starting from 2022-09-27 at 00:00:00 (UTC),” Binance said in a statement.