Crypto exchange Binance announced on Wednesday that it will change the Terra Classic (LUNC) burn tax from 1.2% to 0.2%. The Terra Classic community has successfully passed proposal 5234 to reduce the tax to 0.2% and establish 10% for the community pool to fund the development of the Terra Classic ecosystem and contributors. The consolidation costs for on-chain transactions such as withdrawals and deposits on Binance will be reduced to 0.2%.

Binance changes Terra Classic tax to 0.2%

According to an official announcement on October 19, Binance will update the tax on on-chain transactions, including deposits and withdrawals, from 1.2% to 0.2%. It applies to all Terra Classic (LUNC) and TerraClassicUSD (USTC) deposits and withdrawals. However, the change does not apply to the off-chain tax incineration of trading fees on LUNC spot and margin trades.

Binance lowers the 1.2% tax on LUNC and USTC deposits received to 0.2%. However, deposits may or may not be charged a withdrawal fee by other crypto exchanges or platforms.

During withdrawals, users will receive the withdrawal amount after withdrawal fees charged by Binance and a 0.2% tax by Terra Classic chain.

Terra Classic community introduced and approved proposal 5234 after Binance CEO “CZ” recommended lowering fees to increase LUNC trading, which could increase LUNC burn rate.

Terra Rebels lead developers, Edward Kim and Alex Foreshaw, also supported proposal 5234. In addition, Terra Rebel introduced a proposal for the Terra Classic Grants program to ensure transparent and efficient use of funds in the community pool.

The 0.2% tax cut on Terra Classic and USTC deposits and withdrawals will take effect in Era 98, estimated October 19 at 12.50 UTC.

LUNC Burn Rate Rises Hugely

Binance burned more than 2.5 billion Terra Classic (LUNC) tokens on October 17, bringing Binance’s total to over 11 billion in 3 weeks.

The total number of LUNC burned has reached 22 billion. According to records, the community has burned more than 15 billion LUNC by sending to the fire address and 7 billion LUNC with tax. The burn rate increased to 704 million tokens per day.

The price of Terra Classic is trading at $0.00024, down more than 7% in the last 24 hours. The community appears to be targeting $0.0005 again, supported by the Terra Classic Revival Roadmap. Meanwhile, the community is urging Coinbase and Robinhood to relaunch LUNC.

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.

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