LUNC investors react to CZ’s 1.2% trading tax recommendation on Binance

The infamous Terra Ecosystem Collapse, which wiped out the market prices of TerraUSD (UST) and LUNA tokens, continues to worry anxious investors as co-founder Do Kwon, crypto exchanges and the community collectively try to identify the best route for a sustainable price recovery. .

More recently, Changpeng ‘CZ’ Zhao, the CEO of cryptocurrency exchange Binance, recommended a flat 1.2% trading tax on LUNC trades that could be burned to reduce the total supply of the token and improve its price performance. Addressing the community, CZ stated:

“We will implement an opt-in button (on the Binance exchange), for people to opt-in to pay a 1.2% tax for their LUNC trading.”

However, the exchange would begin taxation for opt-in traders following the consensus of 25% of LUNC investors, ensuring that early adopters “aren’t the only ones paying an extra 1.2%”.

A general trading tax of 1.2% will apply to all LUNC trades only when subscribing traders reach 50% of the total LUNC trading volume on the exchange.

The recommendation divided the LUNA community, as some supported CZ’s decision to implement the accept button, while others interpreted it as market manipulation by a centralized entity.

CZ supported burning LUNC, but believes in community voting, allowing the platform’s traders to finalize the suggestion, adding: “We listen and protect our users.” However, the entrepreneur is aware that unless the change is implemented across all exchanges and on-chain, LUNC traders would prefer to move assets to other exchanges that do not have the cream.

Related: South Korean authorities ask Interpol to issue ‘Red Notice’ for Do Kwon: Report

On the other end of the spectrum, South Korean authorities are trying to track down and arrest Kwon for the collapse of Earth.

On September 14, a court in Seoul, South Korea, issued an arrest warrant against Kwon and five others for violating the country’s capital market law.