Breaking: Binance Implements “Opt-In Button” For 1.2% Tax Burn On Terra Classic (LUNC)

Binance CEO “CZ” in AMA on Friday pointed out that the 1.2% tax burn for off-chain transactions of Terra Classic (LUNC) is not feasible on centralized exchanges like Binance. He believes another option can be to make users opt-in for implementing the 1.2% tax burn. This will also let people know how many of the voting community support the tax burn. Now, Binance announces adding an “opt-in button” for a 3-step implementation of tax burn on LUNC trading.

Binance Adds Conditions to 1.2% Tax Burn for Terra Classic (LUNC)

Binance, in an official announcement on September 24, proposes a 3-step process for implementing the 1.2% tax burn for off-chain transactions of Terra Classic (LUNC). The steps are:

Step 1: Implementing an “opt-in button” that let people approve a 1.2% tax on their Terra Classic (LUNC) trading.

Step 2: Charging a 1.2% tax for all opt-in traders when the quorum reaches 25% of the total LUNC supply on Binance. People who don’t vote will not be charged an additional 1.2% tax for their LUNC trading.

Step 3: Implementing a 1.2% tax burn for all traders when the opt-in traders reach 50% of the total LUNC trading volume on Binance. It will prevent LUNC whales from influencing votes as they don’t trade actively.

However, if the 25% threshold is not reached within a month of the launch of an opt-in button, Binance will remove the feature.

Some believe Binance CEO “CZ” is right about the decision and let traders decide tax on their trades. While some think it’s important for Binance to support the 1.2 tax burn as it accounts for nearly 35% of LUNA supply.

reXx, a member of Terra Rebels, in a tweet said: