After the Terra Collapse, CZ says the Solution would be to Make a 1.2% Trading Tax

The notorious Terra environment breakdown, which expunged market rates for LUNA and TerraUSD coins, worries shareholders as founder Do Kwon, virtual currency transactions, and the public work together to determine the best path for a viable price healing.

Changpeng Zhao, the Chief operating officer of cryptocurrency exchange Binance, lately proposed a plain 1.2% exchange fee on LUNC transactions that might be consumed to decrease the token’s total money supply and enhance its current price. In a statement to the public, CZ asserted that they’d enforce an opt-in toggle on the Binance interaction for individuals to choose whether or not to spend a 1.2% fee on the LUNC transactions.

I answered the question about LUNC in my Twitter Space AMA just now.

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.

— CZ 🔶 Binance (@cz_binance) September 23, 2022

Nevertheless, the transfer would start taxing opt-in market participants after obtaining the approval of 25% of LUNC shareholders, ensuring that early investors aren’t the only ones paying an additional 1.2%.

Only after opt-in market participants account for 50% of overall LUNC trading activity on the transfer can a 1.2% blanket exchange tax be incorporated for all LUNC buying and selling.

The recommendation divided the LUNA public, with some supporting CZ’s choice to incorporate the opt-in click and others viewing it as stock manipulation by a central system.

CZ supported LUNC ignition but considered community elections, allowing system market participants to complete the recommendation, adding that they listened to and protected their clients. The businessman is cognizant that, except if the transition is enforced across all transactions and on-chain, LUNC market participants will prefer to move investments to other marketplaces that do not have that option.

Meanwhile, Kwon is still chased by the Korean authorities

On the opposite side of the scope, South Korean officials are attempting to locate and apprehend Kwon in connection with the Terra breakdown.

Kwon and many people were given an arrest warrant on the 14th of September in South Korea for infringing the government’s financial markets law.

In a Financial Times document published on Monday, the Seoul Southern District government lawyers’ office stated that it had started the operation to put Kwon on Interpol’s Red Notice roster after rescinding the Terra co-passport president’s as he was in Singapore. According to Interpol’s homepage, a Red Notice is issued when authorities demand that an individual be located and temporarily detained pending an arrest warrant, give up, or other civil proceedings. Still, the organization can’t compel local police to arrest him for such a warning.

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