Terra Classic: This Crypto Exchange CEO Takes the Heat of LUNC’s 1.2% Burn

by Arthur · September 24, 2022

After months of waiting, Terra Classic [LUNC] developers finally launched 1.2% tax burn protocol. The rollout managed to attract the interest of the crypto community. Furthermore, several exchanges came to support LUNC by implementing burn off-chain.

However, the crypto community was mainly interested in finding out Binance’s position on this situation. Finally, Binance CEO CZ broke his silence on the same. Via a blog, he mentioned the necessary details regarding his assessment of LUNC’s 1.2% burn. Soon after the announcement, there was anger in the LUNC community as things did not seem to be entirely in their favor.

What was CZ’s position?

CZ articulated his views regarding this episode as he believed that implementing the burn on Binance would not make much of a difference. According to CZ, a majority of LUNC traders would move to other exchanges that did not have the burn. Furthermore, he didn’t think Binance would burn a significant amount of LUNC if they charged 1.2% per transaction.

However, Binance will implement an opt-in button, allowing people to choose to pay a 1.2% tax on their LUNC trading. Once the opt-in accounts reach a holding of 25% of the total LUNC held on Binance, they will start charging a 1.2% tax to all opt-in traders when trading LUNC.

CZ also mentioned, “We believe this is the most scientific way to ‘vote’ our traders. We listen to and protect our users.”

It’s time for the LUNC community’s reaction

It’s no surprise that the LUNC community wasn’t entirely happy after CZ’s announcement. Following this episode, LUNC investors and enthusiasts promoted #BOYCOTTBINANCE on Twitter as their expectations were not met. Still, soon after the announcement, the LUNC community also shared a counter proposal proposing a few viable options.

That’s why I support $LUNC society. New proposal and am sure it will also be crushed. @cz_binance this community will do what you suggest.#LUNCH #LUNACLASSIC #LUNCHARMY pic.twitter.com/CpqtH7jUYp

— Bull.BnB (@bull_bnb) 23 September 2022

Aside from Binance, LUNC was seen receiving support from several global exchanges, including KuCoin. Most recently, MEXC, was another exchange that once again supported the 1.2% fuel tax.

LATEST NEWS : @MEXC_Global support once again 1.2% $LUNC burn treasure OFF-CHAIN!

I will start pushing for MEXC as long as they support us!

Retweet to spread the word and sign up here for EXTRA #LUNCH burning! pic.twitter.com/NXgi6bsNh1

— Classy 👾 (@ClassyCrypto_) 24 September 2022

While all these developments, LUNC suffered quite a lot as it recorded negative 8% 24-hour growth. At press time, LUNC was trading at $0.0002495 with a market capitalization of $1,528,910,737.

Since Binance is one of the largest crypto exchanges in the world, it is not yet clear how Binance’s stance on the burning will affect the coin’s performance.