Crypto Twitter Erupts as CZ Binance Refutes 1.2% LUNC Burn

Binance’s CEO is hesitant to back The 1.2% Tax Burn on LUNC as he comes up with a new proposal of letting users opt in out of free will.
After the 1.2% tax burn implementation, Terra’s native token has drifted by 9.06% since.

Just days ago, Terra Classic (LUNC) implemented the 1.2% tax burn on every transaction taking place on all on-chain transactions. The tax fee charged would directly go to Terra’s dead wallet which would minimize the number of LUNC tokens in circulation.

The 1.2% tax burn has received a lot of support from major cryptocurrency exchanges including KuCoin, MEXC Global, Lbank, Huobi, Bitrue, Gate.io, CoinInn, and the latest, Kraken. Binance was yet to make a statement until Friday in an AMA. Binance CEO, Chao Peng Zhao said that the cryptocurrency exchange could allow people to opt-in for a 1.2% tax burn out of a free will.

“Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for the burn. And see how many of the voting community do that first. Vote with your fees”,CZ stated in a tweet.

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 🔶 BNB (@cz_binance) September 23, 2022

In the AMA twitter space, CZ answered questions about the recent decision made by the Terra community to implement the 1.2% tax burn. CZ stated that Binance will consider backing Terra. According to Chao, Binance may opt to add a new feature where LUNC users will be opting in and out of the 1.2% tax burn instead of constraining them to use it.

Trading on the 1.2% tax burn would highly affect trading on the crypto exchange thus opting to implement the 1.2% tax burn parameter on off-chain transactions. Thus, the tax urn will not be implemented for on-chain transactions including spot and margin trading, as well as Binance Earn services.

CZ believes implementing the tax burn parameter would make use cases on the blockchain meaningless. People will opt not to trade if more transaction fees are charged.

New Tax Burn Fails to bear Fruits as LUNC price

With the community’s effort to raisings LUNC’s price, the implementation of the 1.2% tax burn seems not to bear any changes to Terra’s native token. After the implementation, the token is still swaying at the $0.0002481 mark. The token has drifted by 9.06% since the implementation.