Within 24 hours of launching the 1.2% LUNC tax burn on the Terra Classic network, over 180 million LUNC have been sent to the Terra Classic burn wallet address. A greater percentage of the burn volume is attributed to KuCoin exchange, as disclosed by LUNC Burn, the live tracker of all Terra Classic burns.
Other top exchanges like MEXC, Crypto.Com, and Huobi have also supported the burn initiative while the teeming Terra Classic community continues to press buttons to have Binance implement the 1.2% tax burn on all LUNC off-chain transactions on its platform. MEXC Global, the first centralized exchange to activate the 1.2% LUNC tax burn, destroyed over 466 million Terra Classic tokens courtesy of its 5-day time-limited burn event.
According to data from a LUNC validator Stakebin, over 180 million Terra Classic tokens have been burned ever since the 1.2% tax burn officially went live on the Terra Classic network on September 21. While 80,598,500 LUNC was burned on Wednesday, about 100 million LUNC have been burned so far today.
Binance and Terra Classic (LUNC) Burn
The Terra Classic community is clearly unsatisfied with the most recent update regarding the LUNC burn movement from Binance, the world’s leading blockchain ecosystem and largest crypto exchange by 24 hours trading volume. According to an announcement, Binance clarified as follows;
“LUNC and USTC deposits from users’ deposit addresses into Binance hot wallets will be consolidated and subject to the 1.2% tax burn fee by Terra Classic network once the burn tax is live. We will include the 1.2% tax burn fee into the withdrawal fees for LUNC and USTC. Users will not be charged this fee until withdrawals are made. Binance will adjust the withdrawal fees for LUNC and USTC, as well as the minimum and maximum withdrawal amounts accordingly.”
Meanwhile, the energetic community members of Terra Classic (LUNC) that are eager for a historic comeback have requested the top exchange to extend the implementation of the 1.2% tax burn to spot and margin trading and not just limited to only withdrawal and deposit transactions.
In response to the LUNC community’s request, Binance said that it has applied the 1.2% tax burn for on-chain transactions in-line with the passed proposal. Additionally, the exchange stated that most transactions are settled off-chain, making it difficult for the tax to be levied. However, CZ’s Binance noted that it might review the decision, scheduling an AMA session with the LUNC team for September 22.
As the exchange with a high spot and margin trading activity for LUNC, the community believes that implementing the tax for all spot and margin trades on Binance will drastically increase the burn volume of the Terra Classic token. With the initial total supply of LUNC sitting at approximately 6.9 trillion tokens, the now community-led project intends to reduce the supply to 10 billion tokens via the burn initiative.