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.
I answered the question about LUNC in my Twitter Space AMA just now.
Another option is to implement a feature that allows users to opt-in to a 1.2% commercial rate to tax themselves. And see how many members of the voting community do it first. Vote with your quotas.
— CZ Binance (@cz_binance) September 23, 2022
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.