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Binance CEO “CZ” in an AMA on Friday said the crypto exchange will not implement the 1.2% tax burn for off-chain transactions of Terra Classic (LUNC) and USTC. As a result, the Terra Classic (LUNC) price fell nearly 10% to $0.00024 in an hour as Binance accounts for nearly 35% of LUNC supply. While Binance CEO believes the tax burn on off-chain will impact trading on Binance, the community pushes the crypto exchange to support it.
Binance Turns Down 1.2% Tax Burn for Terra Classic LUNC
Binance CEO “CZ” in an AMA on September 23 said Binance will support the Terra Classic community, but implementing the 1.2% tax burn on off-chain transactions would impact trading on the crypto exchange.
Moreover, Binance has implemented the 1.2% tax burn on deposits and withdrawals. However, the tax burn will not be implemented for on-chain transactions including spot and margin trading, as well as Binance Earn services.
“I think the blockchain should implement the burnt first, but I did not promise saying that right afterwards Binance will do XYZ did not do that, but that people may imply that or infer that, I can see where that’s coming from.”
He believes the 1.2% tax burn will make use cases on the blockchain meaningless. People will stop trading if more transaction fees are charged, making the blockchain less useful. The community wants the tax burn for Terra Classic (LUNC) on off-chain transactions. However, the implications of executing it are probably not feasible.
Binance CEO “CZ” in a tweet shared another option to implement a 1.2% trading fee themselves for the burn. He thinks of a feature to let users opt-in for a 1.2% trading fee and vote with fees.
“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.”
The Impact of Refusal
After Binance CEO “CZ” refused to support the 1.2% tax burn for off-chain transactions, Terra Classic (LUNC) price tumbled nearly 10% in an hour. LUNC price is currently trading at $0.00025, down nearly 11% in the last 24 hours.
The trading volume of LUNC has also dropped, with the 24-hour low and high of $0.00024 and $0.00028, respectively.
Meanwhile, the community looks to sell LUNC or transfer everything off Binance onto Terra Station, where the 1.2% burn tax is supported.
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