Binance Reluctant to Implement The 1.2% Tax Burn on LUNC Spot Trade, as CZ Suggests An Alternative.

Binance remains reluctant to implement the LUNC 1.2% tax burn on LUNC trades, with CEO Changpeng Zhao “CZ” bringing up an alternative for the exchange to introduce a feature that will allow users to choose to opt-in for the 1.2% trading fee.

Binance, among other notable exchanges, has indicated support for the Terra Classic (LUNC) on-chain 1.2% burn tax. Notwithstanding, most of these exchanges, including Binance, have not shown readiness to implement the tax burn on spot trades.

The reluctance has not been received well by the Terra community, as most proponents insist on the full implementation of the proposal. Notwithstanding, CZ noted that he would address the matter’s concerns in a scheduled AMA meeting with the Terra community.

The Twitter space, which was held on September 23 by Terra Rebels, featured CZ, who addressed the concerns raised by LUNAtics. Notwithstanding, CZ brought up a suggestion that would satiate both parties.

Live in Twitter Space AMA now.

— CZ ? Binance (@cz_binance) September 23, 2022

He said:

“Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for the burn. And see how many of the voting community do that first. Vote with your fees,” CZ said in a tweet following the meeting.

I answered the question about LUNC in my Twitter Space AMA just now.

Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for burn. And see how many of the voting community do that first. Vote with your fees.

— CZ ? Binance (@cz_binance) September 23, 2022

Binance has remained reluctant to implement the tax burn on a general scale as exchange fears that they fear losing customers by applying an extra 1.2% fee on trades.

However, Binance CEO comes with something new, an optional 1.2% LUNC burn feature on Binance; most Terra proponents have so far indicated satisfaction with Binance’s CEO proposal. A notable LUNAtic called the suggestion “a great middle ground.” 

“BREAKING NEWS: cz_binance proposes an OPTIONAL 1.2% $LUNC burn on all spot trades! I think this is a great middle-ground to get other exchanges onboard,” the individual noted in a tweet.

With this option, anyone who wants to burn 1.2% can go right ahead and send 1.2% of their balance to the burn address. No one will be stopping them. Anyone unwilling to apply a 1.2% tax on its spot transactions can simply ignore this feature and carry on with the normal trading fee.

More exchanges jump on the bandwagon.

Leading crypto exchange OKX has implemented the 1.2% tax burn on deposits and withdrawals. 

It comes nearly a week after it said in a blog post that it would support the tax parameter change and two days after it went live on the network. The exchange currently hosts over $20 million in 24-hour LUNC volume.

While the lack of implementation of the burn on spot and margin trading activities may disappoint many, it is still positive news for the network as the more opportunities to burn there are, the better. Notably, the community plans to reduce the LUNC supply to 10 billion from a current total of about 6.9 trillion.

It bears mentioning that Binance has suspended LUNC deposits and withdrawals till September 26. While the reason for this is unclear, it may be to deal with the high volume it is currently facing. Notably, Binance chief Changpeng Zhao is currently hosting an Ask Me Anything (AMA) session on Twitter. So it will be unsurprising to see the crypto executive face many questions about LUNC and his promise to help the community on its path to recovery.

So far, over 540 million LUNC has been burnt since launching of the 1.2% Burn Tax, with the greatest volume coming yesterday with about 380 million.

Can Terra Classic (LUNC) reach $0.01 soon.?

The Terra Classic community is driving on a dream to clinch the $1 price point, strengthened more than ever following the 1.2% tax burn implementation just days ago.

However, in the three days since the tax burn has been implemented, only about 540 million LUNC has been burned. That is an average of 193 million daily, and should nothing change, 70.45 billion yearly. It is a far cry from projections by LUNC Burn, an unofficial Twitter account tracking LUNC burn activity. Last week’s numbers predicted that as much as 720 billion LUNC could be burned yearly.

As such, it puts projections of a $1 price point out of reach in the near future, as analysis on The Coin Perspective shows that with a supply of 6.83 trillion, which will be the new supply volume following a year of burning at the current rate, it would need a corresponding market cap of $6.8 trillion (deducting 720 billion LUNC from the current supply), which is frankly impractical.

However, $0.01 may be well within reach within this period under certain conditions that are not so uncommon in the crypto space. According to data from The Coin Perspective, the project will need a market cap of about $68.3 billion to clinch the $0.01 price point.

While this is nearly 70 times the current market cap, it may not be impossible to achieve, especially in a crypto market bull run. It bears mentioning that Dogecoin, generally seen as the meme coin king, once had a market cap of about $88 billion in May 2021. To put it in perspective, this exceeds the current market cap of Tether by over $20 billion, all fueled by the hype surrounding Elon Musk’s support of the token with little to no utility.

Notably, Santiment Feed recently reported that LUNC is showing similar characteristics to other popular meme coins like DOGE and Shiba Inu just before they went parabolic in terms of volume and price action. Add this to LUNC classic’s active development team and community, and we could witness the crowning of another meme coin king in the next bull run.

LUNC is currently trading at the $0.0002693 price point, 4.86% lower in the last 24 hours. Therefore, a rise to $0.01 will represent a 3600% increase.