Binance’s CEO Says LUNC Holders Should “Vote with Your Fees” on 1.2% Tax Burn
Binance CEO Changpeng “CZ” Zhao suggested that the crypto exchange could allow LUNC users to ”opt-in for a 1.2% trading fee themselves for burn” instead of forcing them to do so in a tweet. CZ’s comments come after the LUNC community passed a new resolution to implement a 1.2% burn on each transaction towards creating a fixed supply of 10 billion LUNC tokens.
Binance Could Let LUNC Users Choose to Pay the 1.2% Tax
Changpeng “CZ” Zhao, CEO of Binance, hosted a Twitter Space AMA where he answered questions about the recent decision by the LUNA Classic (LUNC) community to implement a 1.2% burn on each transaction. CZ said Binance could potentially add a feature that allows LUNC users to opt-in for a 1.2% trading fee instead of forcing them to pay it.
“Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for burn. And see how many of the voting community do that first. Vote with your fees,”Changpheng Zhao said in his tweet.
Earlier this week, the LUNC community added a 1.2% tax for each on-chain transaction and asked all crypto exchanges to impose the burn. The move is aimed at creating a fixed LUNC supply of 10 billion tokens, with the burn set to be removed once that target is reached.
At the moment, the total LUNC supply stands at around 6.9 trillion, which means that the supply would have to be reduced by 99.82% to reach the 10 billion LUNC goal. Earlier this month, Binance said LUNC and TerraClassicUSD (USTC) transfers from users’ deposit addresses into hot wallets will be joined together, and “the tax will be applied to all currency denominations currently available on-chain, including LUNC and USTC.”
The withdrawal costs will also be changed to reflect the 1.2% burn, said Binance. However, spot and margin trading for the two tokens will not be subject to the tax, it added.
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New Tax Burn Fails to Shore Up LUNC Price
The implementation of the 1.2% tax burn did not propel the LUNC price as the token remains down nearly 10% in the past 24 hours. The token traded at $0.0002517 at the time of the writing.
LUNC is the native token of the collapsed Terra blockchain, launched four years ago. Following the crash, the community voted to create a new blockchain known as “Terra 2”.
The LUNA implosion in May disrupted the entire crypto industry, eradicating at least $45 billion in crypto wealth. Earlier this month, a court in South Korea issued arrest warrants for Terraform Labs founder Do Kwon and 5 other individuals suspected of violating South Korea’s market rules.
Do you think the price of LUNC could recover in the long term after the new tax burn? Let us know in the comments below.