The mission to maintain the value of Terra Classic (LUNC) has been taken up by the entire community, and Binance has managed to always be at the forefront of this. The proposed transaction fee of 1.2% was fully supported by the community, which caused the value of the digital asset to increase. Now, Binance has come on board with a new trading fee reduction mechanism that would help further reduce the supply of LUNC.
Binance plans to burn LUNC
One way to deplete the coins without taking tokens or hurting the investors who hold the tokens has been through lowering fees. Binance has announced that it will go this route with the cryptocurrency burning trade fees made from LUNC trading.
It had previously been proposed that a 1.2% tax break should be made on all LUNC trading assets on the crypto exchange, but Binance had spoken out against this due to fears of retaliation from unhappy users According to Chanpeng Zhao (CZ), the CEO of Binance, the crypto exchange had been looking for “a better and faster way to support the community”.
On Monday, September 26, the crypto exchange announced that it would implement a trading fee reduction mechanism for all spot and margin trading activities. It plans to take all trade commissions made in the space of a week and conduct a weekly scheduled recording every Monday at 00:00:00 UTC. A chain recording transaction and a weekly report will be available exactly 24 hours after each burn.
Binance has planned to burn the first batch of trading fees, which it said was; “Trading fees for LUNC spot and margin trading pairs to be taxed will be calculated from 09/21/2022 at 00:00:00 (UTC) to 10/01/2022 at 23 :59:59 (UTC).” He further added that “The fee reductions for spot trading pairs and LUNC margin towards the Binance Spot Liquidity Provider Program for the period of 09/21/2022 at 00:00:00 ( UTC) until 2022-09-27 00:00:00 (UTC) will be excluded from the recording amount.”
Binance plans to convert all trading fees to other cryptocurrencies such as BUSD, USDT and BNB made from trading activities on LUNC before each burn. Discounts, discounted rates and/or all other rate adjustments or discounts will not be affected in any way by the burn.
“That way, we can be fair to all users,” said CZ a Twitter. “The trading experience and liquidity remain the same, and Binance can still contribute to the decreasing supply of LUNC, which is what the community wants.”
Featured image from Times Tabloid, charts from TradingView.com
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