Binance to Implement Terra Classic (LUNC) Burn Following Controversial Vote

BNB token burn

Leading global cryptocurrency exchange Binance announced Monday that it would burn all transaction fees generated from Terra Classic (LUNC) spot and margin trading pairs. The move is part of the exchange’s effort to potentially reduce the supply of LUNC after the asset suffered from hyperinflation in May

LUNC Community Rejects Binance’s 1.2% Tax Proposal

On September 16, the LUNC community made a proposal seeking centralized exchanges such as Binance to support off-chain burns by implementing the agreed 1.2% tax on all LUNC transactions to reduce the circulating supply of the asset.

A few days after the proposal, Binance CEO Changpeng Zhao (CZ) noted that the LUNC team should implement the burning technique on the decentralized chain, giving off the impression that Binance would adopt the same mechanism off-chain once the network initiates the setup.

The Binance boss later stated that he was misinterpreted, and instead of placing taxes on transactions, the exchange proposed to introduce an opt-in button that gives investors options to take part in paying taxes on transaction fees or not. 

CZ noted that when the opt-in accounts reach 25% of the total LUNC holdings on the centralized exchange, the company will charge 1.2% for the opt-in traders when they trade. Additionally, the firm will impose the 1.2% taxes on every user trading LUNC on the platform when the opt-in trading volumes cross 50% of the entire LUNC traders on Binance.  

However, members of the crypto community and the LUNC community were dissatisfied with the opt-in feature. 

Binance to Burn All LUNC Trading Fees

Following the rejection, Binance has now introduced a new burn mechanism that involves burning trading fees on LUNC/USDT, LUNC/BUSD, and LUNC/BNB pairs of its spot and margin trading options.

The total trading fees on LUNC spot and margin trading pairs burnt would be calculated every Monday at 00:00:00 (UTC) after the burn, while the on-chain transaction and weekly report will be communicated every Tuesday at the same time.

Binance also said that the first batch of trading fees on LUNC spot and margin pairs allocated for burning would be calculated starting from September 21 to October 1 at 23:59:59 (UTC), noting that the fee rebates on the pairs from September 21 to September 27 will be excluded from the burn. 

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