The world’s largest cryptocurrency exchange will gradually introduce fixed transaction taxation to improve LUNC’s price performance.
Binance CEO Changpeng Zhao has recommended a fixed transaction tax of 1.2% for Terra Classic (LUNC) transactions to burn token and generally reduce supply in the market:
“We will introduce a 1.2% transaction tax subscription feature on the platform for LUNC transactions. But we will only start taxing after 25% of LUNC investors subscribe to token burning.”
He added that the mandatory tax for all users would only be introduced on the platform once the transaction volumes of traders who have subscribed reach 50% of all LUNC transactions on the exchange. Zhao’s proposal has divided the LUNA community into two camps. A number of users supported the Binance CEO’s decision, while others perceive the decision as a tool to manipulate the market.
While Zhao supported the burning of LUNC, he believes that only a community vote will allow platform users to finalise the proposal to tax LUNC transactions, “We listen to our users and protect them.” However, Zhao understands that if taxation is not introduced across all crypto exchanges and markets, Binance users will prefer to move LUNC to other crypto exchanges that do not provide for token burning.
Recall that in May, cryptocurrency exchange Binance floated Terra 2.0 (LUNA) in the Innovation Zone and opened trading in LUNA/USDT and LUNA/BUSD pairs on 31 May.
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