LUNC investors react to Zhao’s 1.2% trading tax recommendation | The Financial Express

LUNC investors react to Zhao’s 1.2% trading tax recommendation

The exchange would start taxing opt-in traders after obtaining the approval of 25% of LUNC investors

LUNC investors react to Zhao’s 1.2% trading tax recommendation
Only once opt-in traders account for 50% of total LUNC trading volume on the exchange will a 1.2% blanket trading tax be applied for all LUNC trading.

The historic Terra ecosystem collapse, which wiped out market values for TerraUSD (UST) and LUNA tokens, continues to scare investors as co-founder Do Kwon, crypto exchanges, and the community collaborate for a sustainable price recovery, as reported by Cointelegraph.

According to Cointelegraph, Changpeng ‘CZ’ Zhao, CEO of cryptocurrency exchange Binance, recently proposed a flat 1.2% trading fee on LUNC trades that may be burned in order to limit the token’s total supply and increase its price performance. CZ addressed the community, saying, “We will implement an opt-in button (on the Binance exchange), for people to opt-in to pay a 1.2% tax for their LUNC trading.”

However, the exchange would start taxing opt-in traders after obtaining the approval of 25% of LUNC investors, ensuring that early adopters “are not the only few paying an extra 1.2%.” Only once opt-in traders account for 50% of total LUNC trading volume on the exchange will a 1.2% blanket trading tax be applied for all LUNC trading.

The recommendation divided the LUNA community, with some supporting CZ’s choice to incorporate the opt-in button and others viewing it as market manipulation by a centralised entity. 

CZ supported LUNC burning but believes in community voting, allowing platform traders to ratify the proposal, saying, “We listen to and safeguard our users.” The entrepreneur is aware, however, that unless the modification is applied across all exchanges and on-chain, LUNC traders will prefer to move assets to other exchanges that do not have the burn, as reported by Cointelegraph.

(With insights from Cointelegraph)

Also Read: Metaform and XP&DLand unveils Durga puja on metaverse called MetaPujo

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.