Y-5, a cryptocurrency exchange based in the United Kingdom, has announced a 1.2% tax burn on all Terra Luna Classic (LUNC) transactions conducted on its platform.
According to the exchange, the move is intended to support the ongoing LUNC burn program initiated by crypto asset investors. According to a recent announcement, Y-5 will send all tokens obtained from the tax imposed on all LUNC transactions to the Terra community’s inferno wallet address.
“Y5 Crypto has recognized the opportunity to assist one of the most demoralized communities in the industry by implementing a burning tax on LUNC transactions on their platform. Specifically, all transactions will be taxed at 1.2%, which will be wholly sent to the LUNC burn wallet weekly,” the exchange said in a statement.
The standard transaction fees will still apply alongside the 1.2% burns, according to Y-5 Crypto, and the exchange will not send the transaction fees to the LUNC burn wallet.
Despite Terra’s negligence, Y-5 comes through for LUNC
The cryptocurrency exchange stated that the initiative is critical to boosting the value of LUNC, which has recently experienced a massive rally.
Y-5 admitted that without the 1.2% tax, LUNC has a slim chance of recovering from its devastating drop in May.
Remember that following the demise of Terra, the team behind the project abandoned the LUNC to relaunch the new Terra token (LUNA) and compensate investors. Therefore, according to the community, the Terra team should burn a portion of the LUNC supply.
With TerraForm Labs refusing to listen, LUNC investors created an inferno address. Investors were encouraged to send small amounts of LUNC at regular intervals to reduce the token’s total supply and possibly increase the price.
Even though over 3 billion LUNC have already been incinerated, Terra investors still want more burns. As a result, investors approved a proposal in June 2022 to implement 1.2% burns on all LUNC transactions. On the other hand, the Terra team has yet to implement the burns, leaving investors to carry on with the burn program.
LUNC Price Increases as Community Burns Continue
It is worth noting that LUNC burns have boosted the asset’s price in recent weeks. According to Coingecko data, LUNC is up 102.9% in the last seven days and 188.4% in the last 14 days.
LUNC is currently trading at around $0.00027039, a pittance compared to its all-time high of $119.18.