LUNC Investors Responds to CEO Binance 1.2% Trading Tax Recommendation.
Do Kwon, crypto exchanges, and the community together endeavor to identify the best route for a sustainable price recovery after the infamous collapse of the Terra ecosystem erased market prices for TerraUSD (UST) and LUNA tokens.
Improving The Coin Price Performance
A flat 1.2% trading tax on LUNC trades was recently recommended by Changpeng Zhao (CZ), CEO of Binance, in order to reduce LUNC’s total supply and improve its price performance.
“We will implement an opt-in button [on the Binance exchange], for people to opt-in to pay a 1.2% tax for their LUNC trading,” said CZ
As a result, the exchange would tax opt-in traders following the consensus of 25% of LUNC investors, ensuring that early adopters “are not the only ones paying an extra 1.2%.”
LUNC trading on the exchange will be subject to a blanket trading tax of 1.2% once 50% of the total volume has been reached by opt-in traders.
I answered the question about LUNC in my Twitter Space AMA just now.
Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for burn. And see how many of the voting community do that first. Vote with your fees.
— CZ 🔶 Binance (@cz_binance) September 23, 2022
“I answered the question about LUNC in my Twitter Space AMA just now. Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for burn. And see how many of the voting community do that first. Vote with your fees,” tweeted the CEO.
The Recommendation Split Up The LUNA Community
CZ’s decision to implement the opt-in button split the LUNA community, as some supported it while others deemed it market manipulation by CZ.
In addition to promoting LUNC burning, CZ believes that community voting should be used to finalize suggestions, adding, “We listen to and protect our users.” However, the entrepreneur knows that LUNC traders might prefer to move assets to other exchanges that don’t have the burn if the change is not implemented across all exchanges and on-chain.