Cryptocurrency News, Terra (LUNA)

Binance Rebuffs 1.2% Tax Burn For Terra Classic Tokens

Shocking news for the LUNC community as Binance firm rejects the 1.2% tax burn proposal for Terra Classic tokens which it initially assented to. The CEO of Binance, Changpeng Zhao, said in an AMA session on Friday with the community that the bourse will no longer implement it. 

Binance Declines Terra Classic Burn Proposal

Binance, the largest cryptocurrency exchange by trading volume, says it will not support LUNC burn. This refusal will affect the burn proposal for all Terra Classic tokens, including LUNC and USTC. 

Shortly after Changpeng Zhao, commonly referred to as CZ, made the announcement, LUNC’s value fell. The token witnessed a drop of 10 percent to trade at $0.00024. And this happened within an hour after the news dropped. 

USTC also met a similar fate as what occurs to one affects the other. 

Although, Binance had initially implemented on-chain burn for Terra Classic tokens, however, the community yearned for off-chain’s as well. The CEO informed the community that it would consider it and give feedback later. Eventually, the feedback was it would neither implement on-chain nor off-chain burn for LUNC and USTC. 

Despite turning down the proposal, the community tried to persuade the exchange to reconsider. CZ said that implementing an off-chain tax burn will affect trading on his platform. 

According to him, a burn proposal as such would relieve the blockchain of significant meaning. It would dissuade people from trading the asset due to exorbitant trading fees. Besides, that will defeat the inherent use case of the Terra blockchain. 

The CEO stated that the blockchain should lead with its implementation. However, that does not guarantee he will follow blindly after. He referenced XYZ in his discussion as a “look before you leap” firm, which is also Binance’s style.

CZ Suggests Another Option

But there is another way out, he said. Users should be allowed to vote on whether or not they want to be taxed 1.2% of their assets. That way, the community, involving everyone, will decide for themselves. 

Let us see how it goes, he stated. Members of the community will vote with their fees. The response gotten from the community will determine the next phase of action. 

LUNC is currently trading at $0.00025 since the news unloaded. It dived 10 percent following CZ’s speech and 11 percent in twenty-four hours. 

CoinMarketCap revealed a decline in trading volume in 24 hours. The coin capped a low of $0.00024 and a high of $0.00028 within a twenty-four-hour timeframe.

Binance gave hope to the LUNC community when it first accepted to implement a tax burn for Terra Classic. But the light at the end of the tunnel soon faded when the bourse dismissed the proposal.

So, the community is looking to move all LUNC and USTC holding to Terra Station while they await burn execution on the blockchain or selloff.

Leave a Reply

Your email address will not be published. Required fields are marked *