Binance responded to the LUNC community’s requests and decided to burn any fees associated with LUNC spot or margin trading pairs. Binance indicated that they would transmit trading fees as well margin trading pairs to LUNC burning addresses.
The announcement was made via a blog post on Binance’s official website. The Terra Classic community expressed dissatisfaction with an ‘opt-in button proposed by Binance CEO. Binance provided the opt-in option to let users choose whether or not to have a 1.2% tax cut on their spot.
After careful evaluation and consideration, Binance decided to take cognizance of the community’s dissatisfaction and set a new proposal. Binance realized that the implementation of an opt in proposal might be time-consuming and not supported by traders. So, Binance proposed an easier and quicker way to assist Terra Classic.
Details Of Binance’s New Burn Mechanism On Tera Classic Spot
Binance stated that it will update weekly the amount of LUNC, USDT equivalent and transaction ID. The blog announcement also outlined the rules for the burn mechanism.
Binance will calculate trading fees for LUNC spot trading and margin trading pairs from previous weeks every Monday at 00.00:00 UTC. Reports and transactions on the chain would then be updated every Tuesday at 00.00:00 UTC.
Starting September 21, at 00.00:00 UTC and ending October 1, at 23.59.59 UTC the first set of burned trading fees would apply. The rebates on LUNC Spot and Margin Trading Pairs for Binance Spot Liquidity Provider Program would not apply from September 21 through 27, 2021.
Additionally, Binance would convert other tokens’ trading fees to LUNC on Mondays. Binance’s CEO stated that Binance wouldn’t force users to pay burn costs. Terra Classic’s burn will not have any effect on BNB fee discount, rebates, and other fees adjustments.
Additionally, the CEO explained that the goal is to preserve liquidity and trading experiences while reducing LUNC supply.
After the Binance Announcement, LUNC prices rocket by 70%
Binance’s tremendous support for the Terra community resulted in a positive change in LUNC prices. After the announcement, LUNC’s price increased by more than 70%.
Interpol’s red notice issued against Do Kwon (Founder Terraform Labs), adversely affected the price for LUNC. South Korean prosecutor confirmed that Interpol had issued the Red Notice against Kwon September 26.
The LUNC price plunged by almost 20% while the LUNA price dropped by 18% following the announcement. It had been trading at below $0.0002, but it is now trading around $0.00032.
Pixabay's Featured Image, Chart: TradingView.com
