Binance accept a loss to burns all LUNC transaction fees to satisfy everyone
Cryptocurrency exchange Binance decided to “turn the wheel” when it announced the burning of LUNC transaction fees to please users.
As reported by FoxCryptoNews, one of the topics discussed by the crypto community last weekend was Binance CEO Changpeng Zhao's refusal to adopt a mechanism to burn 1.2% of the value of each LUNC transaction. known as the “LUNC coin burning tax”.
It all started from the fact that the Terra Classic (LUNC) community wanted to burn 1.2% of the value of each LUNC transaction on the blockchain as a common tax on all users, in order to reduce the supply somewhat. Huge trillions of coins were created in the LUNA-UST crash.
Even so, Binance CEO Changpeng Zhao later denied the LUNC community's requests that the exchange also apply a 1.2% value burn for each LUNC transaction. The reason given by Mr. Zhao is that this will not benefit users of Binance or market makers, large investors, etc., forcing them to switch to other platforms that have not yet applied the tax. In addition, the tax rate will not work if only a part of the community complies, while others stand with their arms crossed and wait for the price of LUNC to rise again.
To appease the LUNC community, the head of Binance has come up with a solution, whereby Binance users have the right to choose whether their transactions will burn 1.2% tax or not, if the trading volume exceeds. If you pass certain milestones set by Binance, the exchange will make it a mandatory requirement.
However, that much is still not enough to convince the Terra Classic community, who think that CZ has "turned over" because it said that it only needs to propose the LUNC tax to be approved and applied to on-chain transactions. , Binance will comply with it.
On the afternoon of September 26, Binance suddenly released the latest statement on the LUNC tax issue. Accordingly, the world's largest cryptocurrency exchange will "burn all spot and margin trading fees of pairs with LUNC" in the form of LUNC coins. Currently, the base transaction fee of the LUNC spot pair is 0.1%, with a 24-hour trading volume of nearly 600 million USD.
The weekly amount of LUNC burned will be updated by Binance every Tuesday, while the burn date will be Monday. This change is in effect for an indefinite period, until further notice.
In essence, this is an act of accepting a loss of revenue from LUNC transaction fees to satisfy both the LUNC community, ordinary users and large whales - while meeting the commitment to burn a part of LUNC to reduce the supply. , while retaining users. It can be seen that this is a very high move by Binance to ensure the interests of all parties.
Binance CEO Changpeng Zhao wrote on Twitter:
“We have decided to burn all LUNC spot and margin trading fees on Binance. Fees will be aggregated, converted to LUNC and transferred to the burning address. The part of the money burned will be our loss, not the user's.
In this way, the interests of all parties will be equal. The trading experience and liquidity will remain the same, while Binance will join forces to reduce the supply of LUNC, just as the community that supports the coin wants.
LUNC price is skyrocketing up to 30% on Binance after the exchange changed its mind to please users.
Fox Crypto News summary
Sep 26, 2022