Global cryptocurrency exchange Binance reveals support for the 1.2% tax burn for on-chain Transactions of Terra Classic (LUNC) & USTC.
According to the announcement, the minimum withdrawal amount, maximum withdrawal amount and withdrawal fees for LUNC and USTC via the Terra Classic network will be reviewed and modified.
On September 10, the community will vote on the 1.2% tax parameter change proposal. The modifications will take effect on September 20 if approved with the tax burn going live on Terra Classic block height of 9,475,200.
The 1.2% fee is deducted from deposits by the Terra Classic network and any remaining funds are credited to the user’s account.
Users who request withdrawals will receive their funds minus Binance’s withdrawal fees and the network’s 1.2% tax reduction.
“Spot and Margin trading for LUNC and USTC, as well as relevant services on Binance Earn (e.g., Binance Staking, Binance Savings), will not be affected by this tax burn” the announcement notes.
The community is currently furious with Binance since it ignored their request to facilitate tax burn on spot and margin trading.
Crypto exchange KuCoin also declared that it will support the tax burn. However, it did not specifically state whether the tax would be applied on trades, only that it would be applied to withdrawals and deposits.
Since deposits and withdrawals are reported on-chain between the exchange and the customer’s wallet, every exchange will really need to support the tax burn for these operations.
Meanwhile Terra Classic is now worth 12x more than Terra LUNA with the Terra LUNC token gaining 280% over the last 30 days. Furthermore, the momentum is still in its favor due to the possibility of the 1.2% tax burn being implemented.
