Binance to burn all LUNC trading fees following community feedback

Published at: Sept. 26, 2022

To support the Terra community’s efforts to revive the Terra LUNA Classic (LUNC) token, crypto exchange Binance announced an off-chain burning mechanism last week. However, after receiving mixed reactions from community members, the exchange revised its burning approach. 

On Sept. 23, Binance CEO Changpeng Zhao wrote that the exchange will create an optional 1.2% tax when trading LUNC. Zhao added that they will roll out the 1.2% tax for all LUNC trading if traders who opt-in to pay the tax reach 50% of the total LUNC trading volume on the exchange, leaving the decision to users.

However, days after the post, Zhao laid out the flaws of their previous plan. Because of this, Binance announced a revised method to support the revival of LUNC. According to Zhao, the exchange will now completely burn all the trading fees that it will collect from its LUNC/BUSD and LUNC/USDT spot and margin trading pairs. The fees collected will be converted into LUNC and sent to LUNC's official burning address.

Through this, the Binance CEO believes that the exchange will be able to contribute to decreasing the supply of LUNC and be "fair" to all users.

Related: Exchanges criticized for 'nothingburger PR' posts on upcoming LUNC tax burn

After the infamous Terra collapse, LUNC investors continued to advocate revival methods for the crypto token. Exchanges supported the revival through airdrops, listing, buyback and burning while community members worked on implementing a 1.2% on-chain tax burn for all LUNC transactions. Following this, the token showed signs of life, soaring by 250% on Sept. 9.

Meanwhile, South Korean authorities are now after Terraform Labs founder Do Kwon for allegedly violating the country’s capital markets law. A court located in Seoul, South Korea issued an arrest warrant for Kwon and five others on Sept. 14. Following this, the International Criminal Police Organization (Interpol) issued a "Red Notice" for Kwon on Sept. 26. The Red notice is a type of request for law enforcement bodies across the globe to arrest persons facing various situations like legal charges.

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