The largest cryptocurrency exchange in the world will gradually introduce a flat taxation of transactions to improve the price characteristics of LUNC.
Binance CEO Changpeng Zhao has recommended a flat 1.2% transaction tax on Terra Classic (LUNC) trades to burn the token and reduce market supply overall:
“We will introduce on the site the function of subscribing to the payment of transaction tax in the amount of 1.2% from transactions with LUNC. But we will start taxing only after 25% of LUNC investors subscribe to the token burn.”
He added that a mandatory tax for all users will be introduced on the platform only after the volume of transactions of traders who have subscribed reaches 50% of all LUNC transactions on the exchange. Zhao’s proposal divided the LUNA community into two camps. A number of users supported the decision of the CEO of Binance, while others perceive the decision as a tool for manipulating the market.
Although Zhao supported the burning of LUNC, he believes that only a community vote will allow platform users to finalize the proposal for taxing transactions with LUNC: “We listen to our users and protect them.” However, Zhao understands that if taxation is not implemented on all crypto exchanges and the market, Binance users will choose to move LUNC to other crypto exchanges that do not provide token burn.
Recall that in May, the Binance cryptocurrency exchange placed Terra 2.0 (LUNA) in the Innovation Zone and opened trading for the LUNA/USDT and LUNA/BUSD pairs on May 31.
Source: Bits
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