In response to proposals from the LUNC community, Binance has decided to eliminate all fees on the LUNC spot and margin trading pairs. Binance said it will send trading fees and margin trading pairs to the LUNC burn address.
The announcement was made via a blog post on the official website of Binance. The Terra Classic community expressed dissatisfaction with the ‘opt-in button’ proposed by the CEO of Binance. Binance offered an opt-in button to allow users to choose whether to implement a 1.2% tax burn in their place.
After careful evaluation and consideration, Binance decided to take cognizance of community dissatisfaction and set a new offer. However, during its assessment, Binance also found that the opt-in offer will take time to implement, and traders may not support it. Therefore, proposed a better and faster way to help the Terra Classic community.
Details of Binance’s New Burn Mechanism on Tera Classic Spot
According to Binance, it will update the amount of LUNC to be burned, its USDT equivalent, and on-chain transaction ID weekly. In addition, the blog announcement outlines the rules that will guide the burn mechanism.
Binance will calculate the total trading fees burned on the LUNC spot and margin trading pairs every Monday at 00:00:00 UTC since the previous week. Receive successive on-chain burn transactions and reports Updates on Tuesday at 00:00:00 UTC.
The first batch of Burning Trading Fees will be calculated from 00:00:00 UTC on 21 September to 23:59:59 UTC on 1 October. This will exclude discounts on the LUNC spot and margin trading pairs for the Binance Spot Liquidity Provider Program from September 21 to 27, 2021.
In addition, Binance will convert the trading fees of other tokens to LUNC on Monday. Binance CEO said that Binance will not reduce the fees for users. The Terra Classic Burn BNB fee will not affect discounts, rebates, or other accrued fee adjustments.
The CEO further explained that they intend to maintain the same trading experience and liquidity while ensuring that LUNC is short in supply.
LUNC price up 70% after Binance announcement
Binance’s overwhelming support to the Terra community resulted in positive results in the price of LUNC. Following the announcement, the price of LUNC increased by over 70%.
Interpol’s red notice against Terraform Labs founder Do Kwon adversely affected the price of LUNC. South Korean prosecutors confirmed that Interpol had issued a red notice against Kwon on 26 September.
The price of LUNC dropped by about 20% after the announcement, while the price of LUNA declined by 18%. It was trading below $0.0002 but is currently trading at $0.00032.
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