BREAKING: Binance applies a 1.2% tax on Terra Classic (LUNC) and USTC

The world’s largest cryptocurrency exchange Binance earlier announced its support for 1.2% tax-burning for Terra Classic (LUNC) and TerraClassicUSD (USTC) on all on-chain activities. But the community wants to support tax burning for off-chain activities like buying and selling. Binance states in an updated announcement that the 1.2% tax burn on exchanges for cross-chain transactions will apply from September 21 at 22:00 UTC.

Binance to Support 1.2% Tax Burn for LUNC

Crypto exchange Binance, in a new announcement on September 16, said that the exchange will apply a 1.2% tax deduction to Terra Classic (LUNC) and TerraClassicUSD (USTC) on September 21 at 22:00 UTC. However, despite agreeing to review and update its support for off-chain transactions, the exchange has not announced its support for it.

The 1.2% tax deduction is applied to on-chain transactions such as deposits and withdrawals. Unfortunately, the 1.2% tax burn will not apply to off-chain activities such as buying and selling LUNC.

LUNC and USTC deposits from addresses will be consolidated into Binance wallets and are subject to a 1.2% tax burn by the Terra Classic network. Likewise, LUNC and USTC withdrawals from Binance wallets will be subject to a withdrawal fee and a 1.2% tax burn. However, fees only apply when making withdrawals.

Furthermore, Binance will adjust the withdrawal fees for LUNC and USTC, as well as the minimum and maximum withdrawal amounts, accordingly.

The proposal to change the tax coefficient of 1.2% was passed by the community. In addition, TFL has also made code changes for the Terra station. 1.2% combustion tax will be applied automatically when the block height reaches 9,475,200.

Other exchanges that support tax burning include KuCoin, Kraken, Huobi, Gate.io, MEXC Global Coinn, BTCEX, and LBank.

Moreover, the community has burned nearly 3.8 million LUNC and has accumulated 565.5 billion tokens so far.

Terra Classic price keeps dropping

Terra Classic (LUNC) price fell below $0.0003 after South Korea issued an arrest warrant against Terra founder Do Kwon. However, the Terra Classic community and auditors have made it clear that Do Kwon is focused on Terra 2.0 (LUNA).

Also, the daily trading volume has fallen below $1 billion. During the rally to reach the $0.0005 target, the daily trading volume jumped over $3.5 billion. The price may rise again after the 1.2% tax burn is implemented on September 20th.

Varinder is a writer, tech editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he shared his knowledge about Blockchain, Cryptocurrency, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a long time and is currently covering all the latest updates and developments in the crypto industry.

Submitted content may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrency. The author or publication assumes no responsibility for your personal financial loss.

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