Binance To Implement 1.2% Tax Burn For Terra Classic (LUNC) And USTC

The world’s largest crypto exchange Binance earlier announced 1.2% tax burn support for Terra Classic (LUNC) and TerraClassicUSD (USTC) on all on-chain activities. But the community wants tax burn support for off-chain activities such as selling and buying. Binance in an updated announcement states that the 1.2% tax burn on the exchange for on-chain transactions will be applicable from September 21 at 22:00 UTC.

Binance To Support the 1.2% Tax Burn for LUNC

Crypto exchange Binance, in a new announcement on September 16, said the exchange will implement the 1.2% tax burn for Terra Classic (LUNC) and TerraClassicUSD (USTC) on September 21 at 22:00 UTC. However, despite agreeing to review and update its support for off-chain transactions, the exchange has not announced support for it.

The 1.2% tax burn is applicable for on-chain transactions such as deposits and withdrawals. Unfortunately, the 1.2% tax burn will not be application on off-chain activities such as LUNC buying and selling.

Deposits of LUNC and USTC from addresses to Binance wallets will be consolidated and subject to 1.2% tax burn by the Terra Classic network. Similarly, withdrawals of LUNC and USTC from Binance wallet will be subject to withdrawal fees and 1.2% tax burn. However, fees are applicable only when withdrawals are made.

Furthermore, Binance will adjust the withdrawal fees for LUNC and USTC, as well as minimum and maximum withdrawal amounts, accordingly.

The 1.2% Tax Parameter Change proposal has been passed by the community. In addition, TFL has also made code changes to the Terra Station. The 1.2% burn tax will be implemented automatically when block height reaches 9,475,200.

Other exchanges that support the tax burn includes KuCoin, Kraken, Huobi, Gate.io, MEXC Global CoinInn, BTCEX, and LBank.

Moreover, the community has burned nearly 3.8 million LUNC and staked 565.5 billion tokens until now.

Terra Classic Price Continues to Fall

Terra Classic (LUNC) price plummeted below $0.0003 after South Korea issued an arrest warrant against Terra founder Do Kwon. However, the Terra Classic community and validators have clarified that Do Kwon is focused on Terra 2.0 (LUNA).

Also, the daily trading volume has dived below $1 billion. During a rally to hit the $0.0005 target, the daily trading volume jumped over $3.5 billion. The price may rally again after the implementation of the 1.2% tax burn on September 20.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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