The world’s largest crypto exchange Binance on Thursday said the 1.2% tax burn will be applicable for on-chain transactions of Terra Classic (LUNC) and TerraClassicUSD (USTC). However, the tax burn will not be applicable on Spot and Margin trading for LUNC and USTC, as well as Binance Earn services.
The community is disappointed with Binance for not considering the community’s request to support tax burn on spot and margin trading.
Binance Supports the 1.2% Tax Burn for On-Chain Activities
Binance, in an official announcement on September 8, has finally announced support for the 1.2% tax burn. The crypto exchange will review and modify the minimum withdrawal amount, maximum withdrawal amount, and withdrawal fees for Terra Classic (LUNC) and USTC via the Terra Classic network.
“The Terra community has passed Proposals 3568 and 4159, which will introduce a 1.2% tax burn for on-chain transactions of LUNC and USTC on Terra Classic network.”
The community is set to vote on the 1.2% Tax Parameter Change proposal on September 10. If passed, the changes will be implemented on September 20.
Deposits and withdrawals of LUNC and USTC will be affected on Binance. During deposits, the Terra Classic network will deduct the 1.2% tax and the balance gets credit to the user’s account. During withdrawals, users will get the amount after deducting withdrawal fees by Binance and the 1.2% tax deduction by the network.
However, the tax burn will not apply to Spot and Margin trading for LUNC and USTC. Moreover, it will not impact Binance Earn services such as staking, savings, etc.
The Terra community was expecting a tax burn on LUNC and USTC trading. Now, the community is unhappy with Binance and its CEO “CZ” for not listening to the community.
Validator LUNC DAO believes Binance’s decision will make people stop trading on Binance. TerraRebel thinks the Terra community is providing over $2 billion daily trading volume on the exchange. The crypto exchange has “raised loads of trading fees and profit” from it.
Earlier today, Binance also announced adding the LUNC/USDT trading pair on September 9 at 08:00 UTC.
The LUNC Community Looks to Hit $0.01
Terra Classic (LUNC) price has rallied substantially as a result of burning, staking, governance, and project building. The daily trading volume on LUNC has jumped over $3.5 billion. The community looks to hit $0.01 in short term, after successfully reaching the $0.0005 target.
Currently, crypto exchanges such as MEXC Global, KuCoin, Gate.io, and CoinInn have expressed support for the 1.2% tax burn proposal. The community hopes Binance will soon announce the 1.2% tax burn on off-chain transactions.
Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.
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