eToro And Crypto.com To Support 1.2% Tax Burn For Terra Classic (LUNC)

Crypto exchanges eToro and Crypto.com are supporting the 1.2% tax burn for Terra Classic (LUNC) and USTC on the Terra Classic network. While Crypto.com has announced to support the tax burn for on-chain activities, eToro seems to offer tax burn for off-chain activities as well as on-chain activities.

The 1.2% tax burn was passed in the majority by the Terra Classic community. In fact, the 1.2% tax burn has been successfully implemented at the block height of 9,475,200 on September 21 at 06.20 UTC.

eToro and Crypto.com Implement Tax Burn for Terra Classic (LUNC)

eToro in a notice on its website on September 20 said the crypto exchange will support the 1.2% tax burn for Terra Classic (LUNC) and USTC on the Terra Classic network. According to eToro, the tax burn will impact the operating costs associated with all offerings of LUNC.

eToro will add an operational fee of 0.6% to bid and ask prices for LUNC, in addition to the standard 1% fee applicable during buying or selling crypto assets on eToro. It suggests the crypto exchange will implement tax burn for on-chain (deposits and withdrawals) and off-chain activities (buying and selling).

The Terra Classic community requests all crypto exchanges to implement the 1.2% tax burn for all off-chain activities. The tax and burn mechanism continues until LUNC reaches a fixed supply of 10 billion. The tax burn gets disabled as the fixed supply reaches 10 billion.

Meanwhile, Crypto.com is also supporting the 1.2% tax burn for Terra Classic (LUNC). However, the crypto exchange will support the tax burn only for on-chain activities such as deposits and withdrawals.

During deposits, the account balance gets credited to the account after the 1.2% tax deduction by the network. Similarly, withdrawals will be subject to withdrawal fee charges and the 1.2% tax deduction by the network.

“To ensure the safety of users’ funds during and after the upgrade, we will temporarily suspend deposits and withdrawals of LUNC token during the network upgrade. The trading of LUNC token will not be affected.”

Other crypto exchanges supporting the tax burn include Binance, KuCoin, Kraken, Huobi, Gate.io, MEXC Global CoinInn, BTCEX, and LBank.

Recently, Binance announced that the management will later decide on the implementation of the 1.2% tax burn for off-chain activities. Currently, the exchange will support tax burn for Terra Classic (LUNC) on on-chain activities.

LUNC Price as the 1.2% Tax Burn Goes Live

The 1.2% tax burn is successfully implemented at the block height of 9,475,200 on September 21 at 06.20 UTC. However, the Terra Classic (LUNC) price has dived nearly 6% after the proposal goes live. The price is currently trading at $0.00028.

Moreover, the community has burned nearly 4.1 million LUNC and staked 632.49 billion tokens until now.

Meanwhile, the community looks to hit the $0.0005 target price again as the tax burn goes live across many exchanges.

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.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.