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LUNC burn tax: Terra Classic token price soars after Binance agrees to burn trading fees

By Capital.com News

Edited by Charlie Mellor

11:57, 27 September 2022

The logo and name of the terra classic (LUNC) token
Binance’s decision to burn trading fees on LUNC has delighted the community – Photo: ShutterStock

Self-proclaimed “lunatics” have been delighted by one of the world’s biggest cryptocurrency exchange platforms, Binance, after it agreed to burn trading fees on terra classic (LUNC).

The coin has since rallied some 60% following the news and was trading at $0.00032 at one point earlier today, 27 September.

LUNA2 to USD

LUNC, a rebranded cryptocurrency, was at the centre of the digital assets market crash in May this year that was sparked by the collapse of the Terra network. 

At the time, Terra hosted two top 10 coins – the algorithmic stablecoin terraUSD (UST) and its counterpart LUNA, which was supposed to keep terraUSD’s value pegged to the US dollar. In May, terraUSD became depegged and the price of LUNA collapsed.

Do Kwon, the boss of TerraLabs – the company behind the Terra blockchain – came forward with a plan to revive the ecosystem. 

A hard fork introduced a new chain with a new-born coin that adopted the old LUNA name, while the original chain was rebranded Terra Classic Network with the original coins renamed to terraclassicUSD (USTC) and terra classic (LUNC).

LUNC community efforts

Since then, the LUNC community has been highly active in its efforts to bring the value of the disgraced coins up.

DOGE/USD

0.13 Price
-0.020% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.61 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,443.94 Price
-1.320% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

65,943.35 Price
-0.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Last week, a 1.2% “burn tax” on every transaction was introduced by the LUNC community, hoping to reduce the token’s current supply from 6.9 trillion to 20 billion. 

On Monday, 26 September, Binance pledged in a statement to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address. 

It also said it would be giving regular updates on how much the was burnt over the previous seven days, with the first annoucement scheduled for 3 October. 

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On-chain burn pledge delights community

Then today, Binance announced it would also introduce 1.2% on-chain burn in the wake of the feedback from their community.

Binance will deploy the 1.2% tax burn by applying a 1.2% consolidation fee for all deposits received by Binance before crediting to users’ accounts, said the company.

When withdrawing LUNC or USTC, Binance users will be now charged withdrawal fees charged plus 1.2% tax burn.

Since this announcement, the LUNC community welcomed the message.

Markets in this article

LUNA2/USD
LUNA2.0 to USD
0.4293 USD
-0.0012 -0.290%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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