- The community is pushing Binance to allow the tax burn on off-chain.
- The price of Terra Classic (LUNC) dropped by roughly 10% in an hour.
In an Ask Me Anything session on Friday, Binance CEO “CZ” claimed the cryptocurrency exchange will not be implementing the 1.2% tax burn for off-chain transactions using Terra Classic (LUNC) and USTC. Due to the fact that roughly 35% of all LUNC are held on Binance, the price of Terra Classic (LUNC) dropped about 10% in an hour, to $0.00024. The community is pushing Binance to allow the tax burn off-chain, despite the CEO’s concerns that it would have a negative effect on trade on Binance.
In an AMA on September 23, Binance CEO “CZ” claimed that the cryptocurrency exchange would back the Terra Classic community, but that the 1.2% tax burn on off-chain transactions will affect trade.
Binance has also imposed a 1.2% tax burn on both deposits and withdrawals. On-chain transactions, like spot trading, margin trading, and Binance Earn services, are exempt from the tax burn.
Price Plummets Following News
As a result of the 1.2% tax burn, he predicts that blockchain applications would become irrelevant. If traders are discouraged by higher transaction costs, blockchain technology will lose much of its value. As a result of community demand, Terra Classic (LUNC) taxes should be burned while doing off-chain transactions. The plan’s potential consequences, however, make its implementation unlikely.
In a tweet, Binance CEO “CZ” revealed an alternative plan to apply a 1.2% trading cost for the burn. He comes up with the idea of a voting system where users may pay a 1.2% trade charge if they so want.
The price of Terra Classic (LUNC) dropped by roughly 10% in an hour after “CZ,” the CEO of Binance, said he did not back the 1.2% tax burn for off-chain transactions.
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