Just-In: Upbit Reveals Plans To Use Terra Classic (LUNC) Transaction Fees

South Korea’s top crypto exchange Upbit plans to divide Terra Classic (LUNC) transaction fees worth about $4.6 million charged during the Terra-LUNA crisis into short-term and mid-to-long-term plans. These plans include establishing a virtual asset monitoring center, writing a white paper on the Terra-LUNA crisis, and donating to organizations working toward relieving damages incurred by Terra investors.

Upbit’s Terra Classic (LUNC) Transaction Fees Repurpose Plan

Crypto exchange Upbit will repurpose the transaction fees charged during the Terra-LUNA crisis for the period May 11-20 as part of moral responsibility to compensate for investors’ loss.

Upbit’s Luna Fee Utilization Committee in a meeting has decided to allocate transaction fees into short-term and mid-to-long-term plans, local media reported on September 27. The total transaction fee of 239.13025970 BTC is now worth about $4.6 million. In May, the transition fees accounted for about $7.5 million, but Bitcoin’s fall below $20,000 has impacted the amount.

The committee decides to establish a virtual asset monitoring center as a long-term plan. It will help ensure fair market practices and investor protection.

Moreover, the committee plans to donate part of the transaction fees to organizations working on damage relief for Terra investors. The short-term plan also includes writing a white paper on the cause of the Terra-LUNA crisis.

Earlier, Upbit and other exchanges planned to refund transaction fees on Terra Classic (LUNC) to users. However, the Luna Fee Utilization Committee in a meeting on September 7 said returning transaction fees to investors is not feasible.

Meanwhile, South Korea’s other exchanges such as Korbit haven’t announced further plans after promising to refund transaction fees to investors.

LUNC Price Awaits Massive Price Move

Terra Classic community’s request to implement tax burn was partially accepted by crypto exchange Binance on September 26. Binance will burn transaction fees on Terra Classic (LUNC) for all spot and margin trading. As a result, the LUNC price jumped over 70% from $0.00018 to $$0.00032.

Currently, the LUNC price is trading at $0.00029, sightly down after some profit booking. However, the daily trading volume has again jumped over $2 billion. Also, the LUNC price faces pressure as Interpol added Terra founder Do Kwon to its red list.