LUNA Classic Up 33% After Binance Commits to Burn Trading Fees

Binance to burn trading fees at exchange’s expense, not users’, CEO says
The LUNC community wasn’t a fan of the crypto exchange’s original plan to have an opt-in button for people to pay the tax

Binance intends to burn trading fees on Luna classic (LUNC) — after Terra governance token holders voted to implement a relatively rare 1.2% tax for on-chain transactions to limit the token’s rapidly-rising supply.

The crypto exchange is set to burn all trading fees collected on Binance for spot and margin trading pairs of LUNC and Binance USD (BUSD), as well as LUNC and Tether (USDT), the company said Monday.

“Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users,” CEO Changpeng Zhao tweeted. “This way we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”

The specific amount of LUNC to be burned, its equivalent value in USDT, and on-chain transaction ID will be updated each week.

The Terra community previously approved a proposal to introduce a 1.2% tax burn for on-chain transactions of LUNC and USTC on Terra Classic network.

The move came after the Terra blockchain imploded in May following algorithmic stablecoin terraUSD (UST) losing its peg to the dollar and the collapse of the LUNA token. LUNA stakers voted at the end of that month to rename the chain Terra Classic, with its native asset being LUNC.

Binance said in a blog post Friday that the exchange would implement an opt-in button for people to agree to pay their 1.2% tax for their LUNC trading. But Zhao said on Twitter that Binance’s plan had changed, saying that the LUNC community was not happy with this approach and that it would take awhile to develop.

LUNC’s price — at a fraction of a cent — was up roughly 33% in the last 24 hours, as of about 1:00 pm ET Monday. The token’s market capitalization stands at roughly $2 billion.

Interpol has issued a global request to arrest Terraform Labs founder Do Kwon, Bloomberg reported. Though South Korean prosecutors said last week Kwon was “obviously on the run” from authorities, he denied those claims in tweets, saying at the time he did not “have anything to hide.”

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Ben Strack
Ben Strack is a Denver-based reporter covering macro and crypto-native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) into traditional finance. Prior to joining Blockworks, he covered the asset management industry for Fund Intelligence and was a reporter and editor for various local newspapers on Long Island. He graduated from the University of Maryland with a degree in journalism.
Contact Ben via email at [email protected]

Source: https://blockworks.co/luna-classic-up-33-after-binance-commits-to-burn-trading-fees/