Crypto Exchange Binance on Wednesday announced changing the burning tax of Terra Classic (LUNC) from 1.2% to 0.2%. The Terra Classic community successfully passed Proposition 5234 to reduce the tax to 0.2% and set aside 10% for community groups to finance the development of the Terra Classic ecosystem and contributors. Consolidation fees for on-chain transactions such as withdrawals and deposits on Binance will be reduced to 0.2%.
Based on the official announcement on October 19, Binance will update the burning tax on on-chain transactions including deposits and withdrawals from 1.2% to 0.2%. It will be used for all Terra Classic (LUNC) and TerraClassicUSD (USTC) deposits and withdrawals. However, the change will not apply to off-chain tax payments for trading fees on spot trades and LUNC margin.
During the withdrawal, the user will receive the withdrawal amount after the withdrawal fee charged by Binance and the 0.2% tax burned by the Terra Classic chain.
The Terra Classic community introduced and approved Proposal 5234 after Binance CEO “CZ” recommended reducing fees to increase LUNC trading, which may increase LUNC burn rates.
Terra Rebels lead developers Edward Kim and Alex Foreshaw also supported Proposal 5234. Additionally, Terra Rebel introduced a proposal for the Terra Classic Grant Program to ensure transparent and efficient use of funds in community groups.
Binance burned over 2.5 billion Terra Classic (LUNC) tokens on October 17th, bringing the total amount burned by Binance to over 11 billion in 3 weeks.
The total number of LUNCs burned has reached over 22 billion. According to the data, the community has burned more than 15 billion LUNC by sending to burned addresses and 7 billion LUNC with taxes. The burning rate jumped to 704 million tokens per day.
The price of Terra Classic is trading at $0.00024, down over 7% in the last 24 hours. The community on the other hand is targeting $0.0005 again, supported by the Terra Classic Revival Roadmap. Meanwhile, the community urged Coinbase and Robinhood to relist LUNC.
