Binance CEO “CZ” said in an AMA on Friday that the crypto exchange will not implement the 1.2% tax burn for off-chain transactions from Terra Classic (LUNC) and USTC. As a result, the price of Terra Classic (LUNC) fell by almost 10% to $0.00024 within an hour, as Binance accounts for almost 35% of the LUNC supply. While the CEO of Binance believes the off-chain tax will affect trading on Binance, the community is pushing the crypto exchange to support it.

Binance Rejects 1.2% Tax For Terra Classic LUNC

Binance CEO “CZ” in a AMA on September 23, Binance said it will support the Terra Classic community, but implementing the 1.2% tax on off-chain transactions would affect trading on the crypto exchange.

In addition, Binance has implemented the 1.2% tax on deposits and withdrawals. However, the tax burn will not be implemented for on-chain trades, including spot and margin trading, as well as Binance Earn services.

“I think the blockchain needs to implement the burnout first, but I didn’t promise to say Binance will do XYZ right after, didn’t, but people can imply that or infer that, I can see where that comes from .”

He believes the 1.2% tax cut will render use cases on the blockchain meaningless. People will stop trading if more transaction fees are charged, making the blockchain less usable. The community wants the tax bill for Terra Classic (LUNC) on off-chain transactions. However, the implications of its implementation are probably not feasible.

Binance CEO “CZ” in a tweet shared another option to implement a 1.2% trading fee themselves for burning. He comes up with a feature that allows users to opt for a 1.2% trading fee and vote with fees.

“Another option is to implement a feature that allows users to choose for themselves a 1.2% trading fee for burning. And look how many of the voting community do that first. Vote with your fees.”

The impact of refusal

After Binance CEO “CZ” refused to support the 1.2% tax burn for off-chain transactions, the price of Terra Classic (LUNC) fell nearly 10% in an hour. The LUNC price is currently trading at $0.00025, down nearly 11% in the past 24 hours.

LUNC’s trading volume has also declined, with the 24-hour low and high reaching $0,00024 and $0,00028 respectively.

Meanwhile, the community seems to be selling LUNC or transfer everything from Binance to Terra Station, which supports the 1.2% burn tax.

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

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