In response to proposals from the LUNC community, Binance has decided to burn all fees on LUNC spot and margin trading pairs. Binance said it would send the trading fees and margin trading pairs to LUNC burn addresses.
The announcement was made via a blog post on Binance’s official website. The Terra Classic community expressed dissatisfaction with an ‘opt-in button proposed by Binance CEO. Binance offered the opt-in button to allow users to choose whether to implement a 1.2% tax burn on their spot.
After careful evaluation and consideration, Binance decided to take cognizance of the community’s dissatisfaction and set a new proposal. However, during their assessments, Binance also discovered that implementing an opt-in proposal would take time, and traders may not support it. Therefore, proposed a better and faster way of assisting the Terra Classic community.
Details Of Binance’s New Burn Mechanism On Tera Classic Spot
According to Binance, it would update the amount of LUNC to be burned, its USDT equivalent, and on-chain transaction ID weekly. In addition, the blog announcement outlined rules that would guide the burn mechanism.
Binance would calculate the total trading fees on LUNC spot and margin trading pairs to be burned from the previous week every Monday at 00:00:00 UTC. Successive on-chain burn transactions and reports would get updated on Tuesdays at 00:00:00 UTC.
The first batch of burning trading fees would be calculated from September 21 at 00:00:00 UTC to October 1 at 23:59:59 UTC. This would exclude rebates on LUNC spot and margin trading pairs for Binance Spot Liquidity Provider Program from September 21 to 27, 2021.
Additionally, Binance would convert other tokens’ trading fees to LUNC on Mondays. The CEO of Binance stated that Binance would not push burn costs on users. The Terra Classic burn would not affect BNB fee discounts, rebates, or other accruing fee adjustments.
The CEO further explained they intend to maintain the same trading experience and liquidity while ensuring the supply decrease of LUNC.
LUNC Price Skyrockets By 70% After Binance Announcement
The tremendous support of Binance to the Terra community produced a positive result in LUNC price. After the announcement, LUNC’s price increased by more than 70%.
The Interpol issuance of a red notice against the Founder of Terraform Labs, Do Kwon, affected the price of LUNC adversely. South Korean prosecutors confirmed that Interpol issued the Red Notice against Kwon on September 26.
LUNC price plummeted by nearly 20%, while LUNA price fell by 18% after the announcement. It was trading below $0.0002 but is currently trading at $0.00032.