S. Korean Exchange Will Use LUNC Burn Fees to Help Crypto Investors
Upbit plans to use the fees it accumulated from LUNC transactions to set up a crypto monitoring center. Through this move, Upbit aims to help those who suffered losses from the LUNA implosion earlier this year, according to South Korean reports.
Upbit Wants to Help Investors Affected by the LUNA Debacle
South Korean crypto exchange Upbit said it will use the money it collects from LUNC burn fees to set up a crypto monitoring center to help those affected by the collapse of Terra and LUNA in May, according to local media reports. The crypto monitoring center will be responsible for protecting Upbit users from unreasonable market activities.
Upbit, which was raided by South Korean prosecutors earlier this year, will invest a portion of the collected fees in short- and long-term initiatives in a bid to aid users who suffered significant losses after the LUNA crash. Additionally, the crypto exchange will use some of the fees to create a white paper and timeline of the debacle, as well as make donations to organizations attempting to help affected investors get back on their feet.
The move comes after Upbit previously established an experts commission to explore how could the company use the collected fees. Upbit accumulated 239.13025970 BTC ($4.8 million) in LUNC fees from May 11 to May 2022 this year.
The algorithmic stablecoin TerraUSD(UST) and its sister token LUNA collapsed in May in a matter of hours, wiping out an estimated $60 billion of the crypto space. Many notable crypto firms like Celsius Network and Three Arrows Capital (3AC) fell into bankruptcy a few months later.
Join our Telegram group and never miss a breaking digital asset story.
Binance to Implement Burn Fees on LUNC Spot and Margin Trading
Last week, the LUNC community voted to implement a 1.2% burn fee for each on-chain transaction and urged all major crypto exchanges to add the tax. The reason for this is that the community wants to create a fixed LUNC supply of 10 billion tokens.
To achieve this target, the current 6.9 trillion supply would have to be reduced by more than 99.8%. The LUNC community plans to lift the fees once the target is reached.
The world’s largest crypto exchange Binance said Monday it will implement the fees “on LUNC spot and margin trading pairs by sending them to the LUNC burn address.” It added that “the specific amount of LUNC to be burned, its equivalent value in USDT, and on-chain transaction ID will be updated each week in this announcement until further notice.”
Do you think other crypto exchanges should make similar efforts to help those affected by the LUNA debacle? Let us know in the comments below.