LUNC burn tax: Terra Classic token price soars after Binance agrees to burn trading fees
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.
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.
BREAKING :
— LUNC Community ???? (@lunaclassic_co) September 27, 2022
On top of supporting the #LUNC burn with a tax fee on margin and spot trades, @binance have just announced that they will be supporting the 1.2% on-chain burn.#ThanksBinance ???????? pic.twitter.com/CPCr3FdhpC
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