Binance CEO Changpeng Zhao talked about the 1.2 percent burn process in the LUNC ecosystem. He stated that this burning process will be applied in spot trade after certain steps. Here are the details…
Binance CEO evaluates LUNC burn proposal
Changpeng Zhao expands Binance’s roadmap to implement the 1.2 percent burn on all LUNA Classic (LUNC) spot trading activities. On Friday, the Binance CEO proposed a compromise to implement the 1.2 percent burn in spot trading activity. Zhao shared this suggestion in a blog post published after a Q&A on Twitter. In the post, CZ reveals how the exchange plans to implement this.
According to the blog post, it will be a 3-step process. In a first step, Binance will create a “join button” to allow users to choose to pay 1.2 percent tax on LUNC trading activities. Second, users who accept 25 percent of the LUNC held on the exchange will be taxed for users who choose to pay. Finally, in step 3, the exchange will apply the tax to all trading activities when participation accounts account for 50 percent of the total trading volume. However, it is also worth noting that the exchange and CZ have terms.
If the Step 2 threshold is not reached within one month of completing Step 1 or falls below the threshold in the future, we will remove the opt-in feature to provide a simpler user experience.
Positive response from the community
CZ’s proposal yesterday was received fairly by many in the Terra community. If the burn is successful, it has a chance to prove to be a big step towards reducing the coin supply for the community. Binance continues to host the largest volume in terms of trading activity, with approximately $370 million in LUNC volume in the last 24 hours. Popular crypto media news outlet Wu Blockchian uses the following statements:
According to Binance, once participation accounts reach 25 percent of the total LUNC held on Binance, we begin to charge a 1.2 percent tax on all discretionary traders when they trade LUNC. Once we reach 50 percent, we will apply a 1.2 percent trade tax on all LUNC transactions.
Meanwhile, more than 950 million LUNCs have been burned since Wednesday implemented the 1.2 percent LUNC tax burn proposal. Supply remains at about 6.9 trillion, far from the 10 billion supply target. However, over 455 million burns took place yesterday alone. LUNC is changing hands at $0.0000025129, with a loss of 8.4 percent at the time of writing. Cryptocurrency has lost 18.4 percent in the last seven days, as we reported on Cryptokoin.com.
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