Recent data show that Terra Classic (LUNC) is currently outperforming Bitcoin (BTC) on KuCoin in terms of trading volume. Also, the embattled digital token has won Huobi’s support for the 1.2% tax burn proposal.
More Exchanges Showing Support for 1.2% LUNC Tax Burn Proposal
The list of leading exchanges that are ready to support the Terra Classic (LUNC) tax burn proposal now includes Huobi. Users might not like the implementation, though.
In a recent tweet, Huobi Global said it will back the 1.2% tax proposal by the LUNC community.
— Huobi (@HuobiGlobal) September 9, 2022
“We are aware of the proposed 1.2% tax burn on the Terra Classic (LUNC) community. Huobi Global will support this initiative to guarantee that your transfers are not affected,” Huobi stated.
Notably, Huobi Global’s support follows Binance’s announcement that it will support the community project. Binance is the largest exchange in the world. The two join other groups that have supported the idea, including Gate.io, KuCoin, MEXC Global, and Y5 Crypto.
— KUCOIN (@kucoincom) September 7, 2022
Even though these are encouraging developments, some community members are unhappy with Gate.io, Binance, and Huobi carrying out the 1.2% tax burn proposal. Interestingly, all three exchanges have rejected implementing the 1.2% tax to trades made on the platform, instead only applying it to deposits and withdrawals. This may deter users from using other exchanges and may not reduce LUNC supply as intended.
Huobi points out that, should Terraform Labs implement the tax proposal, it would go into effect on September 13th. The community intends to proceed with the implementation around September 20, even without Terraform Labs’ support.
However, they issued a cautionary note, stating that this tax burn would not apply to spot trades or other relevant trades of USTC, LUNC, ANC, and CTXC2X on the Terra Classic network.
The LUNC Token: New Achievements and the Tax Burn Policy
The multibillion-dollar crash of the Terra blockchain in May served as the focal point of the present cryptocurrency crisis and resulted in the bankruptcy of several crypto investors and investment companies.
The algorithmic stablecoin for the network, TerraUSD (formerly UST), lost its peg to the dollar, causing LUNC (previously LUNA), the stablecoin’s stabilizer, to undergo hyperinflation. Even with the new burn, the existing supply of LUNC tokens, which is close to 7 trillion, won’t appreciably affect the coin’s fundamentals.
The LUNC token has continued to attain new achievements in preparation for the tax burn policy. Notably, LUNC has surpassed Bitcoin, Ethereum, XRP, and Solana to become the most actively traded asset on KuCoin in terms of volume. In contrast to about $1710 million in Bitcoin, the trading volume for LUNC is currently over $300 million.