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eToro And Crypto.com To Support 1.2 Percent Tax Burn For LUNC

21-Sep-2022 By: Simran Mishra
eToro And Crypto.com

The 1.2% tax burn for Terra Classic and USTC 

on the Terra Classic network is now supported by cryptocurrency exchanges eToro and Crypto.com. 

While Crypto.com has announced that it would enable tax burn for on-chain operations, eToro appears to support tax burn for both on-chain and off-chain activities.

The Terra Classic community unanimously approved the 1.2% tax burn. The 1.2% tax burn was successfully implemented at the block height of 9,475,200 on September 21 at 11:50 AM IST.

eToro and Crypto.com Implement Tax Burn for LUNC

On September 20, eToro announced on its website that it will enable the 1.2% tax burn for Terra Classic and USTC on the Terra Classic network. According to eToro, the tax burn will affect the operating costs of all LUNC services.

In addition to the standard 1% fee charged when buying or selling crypto assets on eToro, an operating fee of 0.6% will be added to bid and ask prices for LUNC. It implies that the cryptocurrency exchange will implement tax burn for both on-chain (deposits and withdrawals) and off-chain transactions (buying and selling).

The Terra Classic community proposes that all crypto exchanges adopt the 1.2% tax burn for all off-chain activity. The tax and burn mechanism will be activated until LUNC reaches a fixed supply of 10 billion. When the fixed supply hits 10 billion, the tax burn is disabled.

Meanwhile, Crypto.com is also supporting Terra Classic's 1.2% tax burn. However, only on-chain activity such as deposits and withdrawals would be supported by the crypto exchange.

During deposits, the account balance is credited to the account after the network's 1.2% tax deduction. Similarly, withdrawals will be subject to withdrawal fees as well as the network's 1.2% tax deduction.

The tax burn is also supported by the following cryptocurrency exchanges: Gate.io, MEXC Global CoinInn, BTCEX, LBank, KuCoin, Kraken, and Huobi.

Recently, Binance announced that the management will later determine whether to impose the 1.2% tax burn for off-chain activity. Currently, the exchange will enable Terra Classic (LUNC) tax burn on on-chain activity.

As the 1.2% tax burn kicks in, the LUNC price rises

On September 21 at 11:30 IST, the 1.2% tax burn was successfully executed at the block height of 9,475,200. However, the price of Terra Classic (LUNC) has dropped approximately 6% since the proposal went live. At the time of writing, the LUNC price is trading at $0.00028.

Furthermore, the community has burnt almost 4.1 million LUNC and staked 632.49 billion tokens until this point. Meanwhile, once the tax burn goes live across several exchanges, the community expects to hit the $0.0005 target price.

Read also: Binance And FTX In Race For Acquiring Voyager Digital

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