Binance will destroy all trading fees generated on its LUNC/BUSD and LUNC/USDT spot and margin trading pairings.
In an attempt to assist the Terra community in reviving the Terra (LUNA) currency, which is now known as Terra Classic (LUNC), crypto exchange Binance unveiled an off-chain burning mechanism last week. However, after getting contradictory feedback from community members, the exchange amended its strategy to burning.
The CEO of Binance, Changpeng Zhao, said on September 23 that the exchange would implement an optional 1.2% fee on LUNC transactions. Zhao said that they would implement the 1.2% fee on all LUNC trades if traders opting to pay the tax reach 50% of the entire LUNC trading volume on the exchange, leaving the choice to the users.
However, days later, Zhao outlined the shortcomings in their earlier strategy. Binance announced a revamped mechanism to help the resurrection of LUNC as a result. According to Zhao, the exchange will immediately destroy all trading fees collected from its LUNC/BUSD and LUNC/USDT spot and margin trading pairings. The gathered payments will be translated into LUNC and delivered to the official address for burning LUNC.
The CEO of Binance thinks that by doing so, the exchange would be able to reduce the supply of LUNC and be “fair” to all users.
After the iconic Terra crash, LUNC investors continued to fight for the cryptocurrency token’s rebirth. The rebirth was backed by exchanges via airdrops, listing, buyback, and burning, while the community pushed to impose a 1.2% on-chain tax burn for all LUNC transactions. The next day, on September 9, the token exhibited signs of life by increasing by 250%.
In the meanwhile, South Korean officials are pursuing Terraform Labs’ founder Do Kwon for allegedly breaking the nation’s capital markets legislation. On September 14, a court in Seoul, South Korea issued arrest warrants for Kwon and five others. The International Criminal Police Organization (Interpol) subsequently issued a “Red Notice” for Kwon on Monday. The Red Notice is a call for law enforcement agencies throughout the world to arrest individuals facing different circumstances, such as legal proceedings.
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