Binance Shares Details of Its Support for Terra Classic (LUNC) 1.2% Tax Burn

Terra Classic's Ambitious Repeg Plan Calls for Binance to Burn 50% of USTC Fees

The world’s top exchange, Binance, has announced that it will support Terra (LUNA) Tax Burn.

Binance, the world’s largest cryptocurrency exchange by trading volume, announced wallet maintenance for the Terra Luna classic network, which will start on September 8, 2022, at 06:00 (UTC) and run for four hours. This will result in the suspension of all deposits and withdrawals. This news has sparked rumors about whether the exchange will support the Terra Classic burn.

Barely 12 hours later, Binance announced that it would amend the maximum withdrawal amount, minimum withdrawal amount, and withdrawal fees for LUNC and USTC over the Terra Classic network following the launch of the Tax burn on September 20.

According to Binance in the blog post captioned in the announcement, “Deposits: Transactions will be taxed by the Terra Classic network before it reaches Binance. The balance will be credited to your Binance account after the 1.2% tax deduction by the network.

Withdrawals: Users will receive the withdrawal amount minus withdrawal fees charged by Binance and the 1.2% tax deduction by the network.”

LUNC Community Not Satisfied With Binance Exempting LUNC Spot and Margin Trading

Binance has not, as of yet, announced that trading in LUNC would be taxed. The exchange also states that when Tax Burn launches, Spot and Margin Trading for LUNC and USTC will not be affected.

According to LUNC DAO’s tweet, the LUNC community is upset with Binance’s decision not to apply tax burn on LUNC trading.

CZ’s failure to honor his word has left them quite dissatisfied. They continued by saying that applying the 1.2% fee on deposits and withdrawals would only serve to deter users from leaving Binance. Binance is not doing what the community requested, which is to apply the LUNC burn to spot + margin trading.

The proposed 1.2% tax burn for Terra Luna Classic (LUNC) tokens was similarly supported by popular cryptocurrency exchanges Gate.io and KuCoin. Upon the proposal’s official approval and implementation on the Terra mainnet, KuCoin announced in a press release that it would do the same for its platform.

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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.