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Binance Implements "Opt-In Button" On LUNC | CoinGabbar News

Binance proposed a three-step procedure for applying the 1.2% tax burn for Terra Classic (LUNC) off-chain transactions in an official release on September 24.&l

Binance Implements "

Binance CEO "CZ" stated in an AMA on Friday that 

the 1.2% tax burn for Terra Classic (LUNC) off-chain transactions is not viable on centralized exchanges like Binance. 

He believes that another possibility is to make users opt-in to the 1.2% tax burn. This will also indicate how many individuals in the voter base support the tax burn. 

Now, Binance has announced the inclusion of an "opt-in button" for a three-step implementation of tax burn on LUNC trading.

Binance Adds Conditions to 1.2% Tax Burn for LUNC

In an official announcement on September 24, Binance proposed a three-step process for implementing the 1.2% tax burn for Terra Classic off-chain transactions. The steps are:

Step 1: Adding an "opt-in" option that allows users to approve a 1.2% tax on their LUNC trading.

Step 2: A 1.2% fee will be levied on all opt-in traders when the quorum on Binance hits 25% of the total LUNC supply. People who do not vote will not be subject to an extra 1.2% tax on LUNC trading.

Step 3: Implementing a 1.2% tax burn for all traders once opt-in traders hit 50% of the total LUNC trading volume on Binance. It will prevent LUNC whales from influencing votes as they do not actively trade.

However, If the 25% target is not attained within a month of the opt-in button's activation, Binance will withdraw the feature.

Some believe Binance CEO "CZ" is right in his choice to let traders select how to tax their trades. While some believe that Binance should support the 1.2 tax burn as it amounts for approximately 35% of LUNA supply.

What “CZ” Believes

Binance CEO "CZ" argues that a 1.2% tax burn will render blockchain use cases meaningless. Furthermore, an increase in fees would reduce the trading volume on Binance since users will stop trading. Binance, for example, has already implemented the 1.2% tax burn for on-chain transactions.

The price of Terra Classic (LUNC) dropped as the CEO of Binance refused to implement tax burn for off-chain transactions. At the time of writing, the LUNC price is currently trading at $0.00025, down roughly 8% in the last 24 hours.

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