Which Exchanges Will Apply The 1.2% Tax Burn For Terra Luna Classic (LUNC)?

Luna Classic (LUNC) quema burn

✍️ 21 September, 2022 - 12:52 👤 Editor: Jakub Motyka

Terra Classic (LUNC) tax burn is causing a stir in the crypto space. Implementing the 1.2% burn across transactions aims to address LUNC supply concerns. Speculations on a potential price rally are ripe as major exchanges rush to implement the tax regime.

Ten crypto exchanges, including Binance, have so far adopted the proposal. The world’s largest crypto exchange has announced tax burn support for Terra Classic LUNC and TerraClassicUSD USTC. According to the statement, the on-chain support will begin on September 21 at 22 Hours UTC.

Binance Is Among Exchanges Supporting The Burn

All LUNC deposits from user addresses to Binance wallets will reportedly be cumulated and subjected to a 1.2% tax burn. The Terra Classic network will equally apply the fee on withdrawals. Binance has noted that the spot and margin trading and Binance Earn would not be affected.

Binance Terra Luna Classic (LUNC) burn
Terra Luna Classic (LUNC) burn on Binance has been a polemic topic in the last few days.

Other exchanges adopting the tax regime include Huobi, KuCoin, Bitrue, Gate.io, Kraken, CoinInn, MEXC Global, and Lbank. From the list, only KuCoin, CoinInn, and MEXC Global, and also as just announced eToro, are supporting a burn on LUNC trading.

ExchangeTax On Deposit (LUNC)Tax On Withdrawal (LUNC)Tax On Trading (LUNC)
Table with all the exchanges applying the new tax burn for Terra Luna Classic (LUNC).

Crypto.com also took to Twitter yesterday to announce support for tax burn. The platform said the tax would be deducted before being credited to user accounts. Similarly, a 1.2% tax deduction on deposits will apply before process completion on the Singapore-based exchange.

eToro just announced they will implement the 1.2% tax burn on trading activity, not only on deposits and withdrawals like Binance or Crypto.com.

Terra Ecosystem Targets Supply Less Than 10 Billion in The Burn

Luna Classic was rebranded to the native token of Terra blockchain after a historic meltdown in May. The collapse, which sent major shockwaves in the crypto space, pushed LUNA to zero. Following the event, the Terra community passed a proposal for a 1.2% tax burn for all on-chain transactions. The burn aims to cut token supply to as low as 10 billion LUNC.LUNC token burn started on September 20 at Terra Classic block height of 9,475,200.

The announcement is yet to have a full-blown impact on the price of LUNC. On September 19, Terra Classic tanked under $0.0003 following claims that Terra co-founder, Do Kwon, was facing an arrest warrant and was on the run. Kwon later resurfaced to rebuttal the claims, although the police said the executive had fled Singapore.

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Jared Kirui
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