Binance, the largest crypto exchange in the world by trading volume, has announced its support for the newly passed Terra Classic community proposal, which is to make all exchanges comply with the reduction of tax burn for LUNC and USTC on-chain transactions.
Recalled that Terra Classic proposal 5234 was introduced and passed via a governance voting process a few days ago, as a measure to restore the dwindling daily volume of LUNC, which was affected by the 1.2% tax burn.
In an announcement on the 19th of October, Binance stated that it will comply with the new proposal by reducing the tax burn on the Terra Classic network from 1.2% to 0.2%.
According to the report, the change has taken effect at epoch 98, or approximately at 12:50 (UTC) on October 19.
Update on Deposit and Withdrawal Fees for $LUNC and $USTC on Terra Classic (LUNC) Network (2022-10-19).https://t.co/4OvUlzcIiA
— Binance (@binance) October 19, 2022
Consequently, Binance stated that the update will reduce the 1.2% consolidation fee for all LUNC and USTC deposits received by Binance to 0.2%. However, this will not affect LUNC and USTC deposits to Binance as they will still be subject to the withdrawal fees charged by other exchanges or platforms.
Moreover, the exchange stated that users will receive the withdrawal amount minus withdrawal fees charged by Binance and the 0.2% tax burn.
Binance Support to Terra Classic Community
It is clear that Binance has been supporting the Terra Classic community since the implosion of the blockchain back in May 2022.
Changpeng Zhao, the CEO of the exchange, had come up with a number of suggestions that he thought would bring back the glory of the embattled chain.
After the unexpected incident happened, he advised Terraform Labs, the firm behind the development of Terra blockchain, to adopt the burning of tokens for the dream revival rather than creating a new chain, but they were clearly adamant and went ahead to launch an entirely new chain.
Also, it was CZ that first suggested the reduction of the 1.2% tax burn to encourage LUNC whales’ participation and boost the digital token’s liquidity.
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