Binance Announces Major Update On LUNC Trading Fees Burn Mechanism

One of the world’s largest crypto exchange Binance, has announce a huge update on the Terra Classic (LUNC) burn mechanism..

In a blog post shared today by Binance, has decided to burn all trading fees for LUNC sports and margin trading pairs against BUSD and USDT.

Binance Change Course On Burn Mechanism

Previously, a flat 1.2% trading tax was put on LUNC trades, in order to reduce LUNC’s total supply and improve its price performance. Before, CEO of Binance, CZ, said that they will implement an “opt-in button” for people to opt-in to pay a 1.2% tax for trading LUNC.

Once 50% of the total volume of subscribers have been reach by opt-in traders, a trading tax of 1.2% will be implemented.

However, today, Binance announce that they will change and implement a burn mechanism on the trading fees.

CZ also further explain that implementing the opt-in trading mechanism would be difficult and many LUNC traders are not happy about it.

Related: Binance CEO CZ Explains Why Stock Market Affects Crypto Market 

Today as the interpol has issued a red notice of Do Kwon, the price of LUNC fell by around 20%. With the huge update by Binance, the price of LUNC jumps as high as 60%. Within 5 minutes, price was up more than 25%.

CZ On The Change in Burn Mechanism

He said that there are 3 things about the previous opt-in mechanism. He tweeted: “Three things here: 1) The LUNC community wasn’t happy with this approach. 2) It’s going to take a while to develop. 3) It’s not going to work anyway. Our traders won’t vote for it. Since then, we were discussing a better, quicker way to support the community.”

He further stated that, “Instead, we have decided to begin burning all trading fees collected on the LUNC/BUSD and LUNC/USDT spot and margin trading pairs on Binance. Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users’.”

He end with “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.”.

All the trading fees of LUNC spots and margin trading pairs will be sent to the burn address created by the community. The burn on trading fees will be done every Monday at 00:0:000 UTC. There will be a burn report every Tuesday.

The first batch of trading fees on LUNC spot and margin trading pairs to be burned will be calculated from 2022-09-21 at 00:00:00 (UTC) to 2022-10-01 at 23:59:59 (UTC). The fee rebates on LUNC spot and margin trading pairs toward Binance Spot Liquidity Provider Program for the period of 2022-09-21 at 00:00:00 (UTC) till 2022-09-27 00:00:00 (UTC) will be excluded from the burn amount,” Binance stated in the blog.

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