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Binance Updates Terra Classic Deposit and Withdrawal Fees

Binance will cut the 1.2% burn tax on Terra Classic and USTC deposits to 0.2%. In contrast, other crypto exchanges or platforms may or may not charge withdrawal fees on deposits.

19 Oct 2022 By: Rohit Tripathi
Binance Updates Terr

Binance, a cryptocurrency exchange, announced on Wednesday (Oct 19) 

that the Terra Classic (LUNC) burn tax has been reduced from 1.2% to 0.2%. 

The Terra Classic community unanimously approved Proposal 5234, which reduced the tax to 0.2% and established a community pool of 10% to fund Terra Classic ecosystem growth and contributors. On Binance, the consolidation charge for on-chain transactions like withdrawals and deposits will be cut to 0.2%.

According to an official announcement made on October 19, Binance would reduce the burning tax on on-chain transactions, including deposits and withdrawals, from 1.2% to 0.2%. It will apply to all Terra Classic (LUNC) and TerraClassicUSD (USTC) deposits and withdrawals. The adjustment, however, will not apply to the off-chain tax burn of LUNC spot and margin trades.

Binance will cut the 1.2% burn tax on received LUNC and USTC deposits to 0.2%. Other crypto exchanges or platforms, on the other hand, may or may not impose withdrawal fees on deposits.

During withdrawals, customers will get the withdrawal amount after withdrawal fees charged by Binance and a 0.2% tax burn by Terra Classic chain.

After Binance CEO "CZ" advocated lowering fees to boost LUNC trading, which may raise the LUNC burn rate, the Terra Classic community submitted and passed Proposal 5234.

Proposal 5234 was also endorsed by Terra Rebels' main developers Edward Kim and Alex Foreshaw. Furthermore, Terra Rebel proposed the Terra Classic Grants Program to ensure the transparent and effective utilization of community pool revenues.

The 0.2% tax burn on Terra Classic and USTC deposits and withdrawals will be implemented at epoch 98, which is expected to occur on October 19 at 6:20 PM IST.

LUNC Burn Rate Rises Massively

On October 17, Binance burnt nearly 2.5 billion Terra Classic (LUNC) tokens, bringing the total burned count by Binance to almost 11 billion in three weeks.

The total LUNC burnt has surpassed 22 billion. According to statistics, the community has burnt more than 15 billion LUNC by sending it to the burn address and 7 billion LUNC with tax. The daily burn rate increased to 704 million tokens.

The price of Terra Classic is currently trading at $0.00024, down over 7% in the last 24 hours.  The Terra Classic Revival Roadmap encourages the community to aim towards $0.0005. In the meanwhile, the community is urging Coinbase and Robinhood to relist LUNC.

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