CZ’s Binance has finally danced to the tune of the LUNC community regarding the 1.2% tax burn initiative. Probably, the biggest news the Terra Classic (LUNC) community has been longing to hear.
After much deliberation on a better and quicker way to support the Terra Classic community, Binance, the popular cryptocurrency exchange and largest digital assets marketplace by trading volume has extended its implementation of the LUNC tax burn to cover spot trading and margin trading. Before now, the exchange only performed the burn for LUNC deposits and withdrawals operation but proposed three steps to achieve an effective burning exercise.
Later on, Changpeng Zhao (popularly known as CZ), the founder of Binance stated that forcing tax is centralized and high tax signifies greed on the part of the Terra Classic (LUNC) team. He said that LUNC holders should move their tokens to Binance and vote in support or against the implementation of the tax on spots and margin trades. CZ added that the burn will then be executed if its users vote in support of it.
However, the teeming Terra Classic (LUNC) community continued to hope that Binance will join the bandwagon of exchanges that have fully supported the burn proposal. In a recent outcome, Binance has adopted the most unexpected approach to undertake the 1.2% LUNC tax burn on spots and margin trades.
Here is how the top exchange has set out to carry out the Terra Classic burn mechanism. Changpeng Zhao wrote on Monday; “Since my AMA on Friday, we’ve had a number of discussions about how Binance can better support the LUNC community’s requests for transaction tax burns. The last thing I said was we will implement an opt-in button. This has since changed.”
He added that the LUNC community wasn’t happy with this approach and it was going to take a while to develop. In addition, he mentioned that the approach was not going to work as its users were not going to vote for it.
“Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance. Fees will be converted to LUNC and then sent to the burn address. The burn is paid at our expense, not the users’,” he stated.
Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance.
Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’.
— CZ 🔶 Binance (@cz_binance) September 26, 2022
“This way we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants,” the Binance CEO added.
With Binance fully supporting the LUNC burn movement, it is believed that more tokens will be sent to the LUNC burn address daily. In consequence, the total supply of Terra Classic could be reduced to 10 billion faster than previously expected.