Terra: Does Binance taxing 1.2% LUNC transaction make it great again?
Terra failure continued to haunt the market as strong selling pressure continued to push Terra Classic (LUNC) price lower. In fact, the Terra LUNA cryptocurrency crash caused the coin to drop 99.9% in price. However, despite the aforementioned episode, the 'old community' took a different route to maintain traction.
The final step seeks to help the struggling token...
LUNC come back from the dead
Many crypto projects adopt cryptocurrency burning as a means of limiting the circulating supply of their tokens. Thus, it helps the price to potentially grow due to increased demand. In recent years, this mechanism has been used for a variety of reasons. But can it work here?
Binance CEO Changpeng Zhao (CZ) created quite a stir in the Terra community after announcing his steps to help the token 'disappear'. In this document, CZ proposed a flat trade tax of 1.2% on LUNC transactions that could be burned to reduce the total token supply and improve its price performance.
In a September 24 blog, he stated:
“We will be rolling out a signup button (on the Binance exchange), for people to choose to pay a 1.2% tax on their LUNC transactions.”
Once registered accounts reach 25% market share in total LUNC on Binance, “we start charging 1.2% tax to all merchants who sign up when trading LUNC,” the blog adds. When it reaches 50%, a 1.2% trade tax will be imposed on all LUNC transactions.
Ergo, brilliant supply could help altcoins, as demand picks up. But is the burning effective?
LUNC implement 1.2% tax
After months of waiting, the developers of Terra Classic [LUNC] have finally implemented the 1.2% tax burning protocol. The launch has attracted the interest of the crypto community. Well, he burned over 3.5 billion LUNC tokens and gambled over 550 billion LUNC tokens.
This caught the attention of investors as daily trading volume exceeded $3.5 billion and the price of LUNC has spiked in recent weeks.
The proposal has received interesting interest across the community. According to online chain analysis firm Santiment, LUNC has faced strong interest from the crypto community, seeing a significant increase in related discussions.
Not only this, but it also gets support from exchanges like KuCoin and many more. However, for now, the price doesn't really show a promising outlook as it continues to slide south. Therefore, the best decision would be to be cautious with whatever you do.
Sep 26, 2022