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July 19, 2024
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Binance Supports LUNC’s Tax Burn, But What’s The Catch?

The post Binance Supports LUNC’s Tax Burn, But What’s The Catch? appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

Since Terra’s LUNA collapsed along with its stablecoin, USTD, which lost its peg against the US dollar, the currency has been striving for stability. At the time of writing, Terra (LUNA) is selling at $2.69 with a drop of 7.72% over the last 24hrs.

After the collapse, the network introduced TerraClassic (LUNC) and its stablecoin TerraClassicUSD (USTC). Currently Terra Classic (LUNC) is trading at $0.000265 after a fall of 4.30% on the last day.

Recently, there was an announcement from one of the largest cryptocurrency exchanges that it would support a 1.2% tax burn for Terra Classic (LUNC) and TerraClassicUSTC (USTC) on all-chain activities, which will start from September 21 at 22:00 UTC.

LUNC’s 1.2% Tax Burn to Be Supported By Binance

However, now the Terra network is demanding tax-burn support for even off-chain activities like buying and selling. After the increase in the demand, the exchange claimed that it would review and update regarding its support for the off-chain transaction, but since then, there has been no update received from the firm.

For now, the 1.2% tax burn is only supported for on-chain activities like deposits and withdrawals but not for off-chain activities such as buying and selling. From September 21, LUNC and USTC deposits from addresses that are transferred to the Binance wallet will be consolidated and they are conditional to a 1.2% tax burn by the Terra Classic system. It’s the same with withdrawals, where after LUNC and USTC are withdrawn from the Binance wallet, there will be an application of withdrawal fees and a 1.2% tax burn. 

There will be minimum and maximum withdrawal fees and the 1.2% burn tax will be automatically affected when the block height hits 9,475,200. This will impact exchanges like KuCoin, Kraken, Huobi, Gate.io, and MEXC Global CoinInn among others.

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