Binance, the largest exchange in the world by 24-hour trading volume, reportedly said today that the Terra Classic (LUNC) burn mechanism will be used to burn all trading fees for Terra Luna Classic (LUNC) tokens.
The burn mechanism by the top cryptocurrency exchange would be applied to all trading costs for LUNC spots and margin trading pairs on Binance.
In accordance with the exchange, the LUNC burn program, which began on September 1, 2022, will continue until further notice. Apparently, the project was launched in reaction to the recently carried out community burn proposal.
The community-created burn address for the token will now receive all trading fees for LUNC spots and margin trading pairs
The CEO of Binance, Changpeng Zhao proposed an alternative for the exchange by introducing a feature that allows users to choose to opt-in for the 1.2% trading fee. Binance was initially reluctant to implement the LUNC 1.2% tax burn on trading because the exchange fears losing business and customers.
The exchange then stated that there would be three steps taken to impose burns on trade, but today Binance declared that they “ will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address.”
Additionally, every Monday at 0:00:000 (UTC), all trading fees for the preceding week on LUNC spots and margin trading pairs will be burned. The weekly report on burn transactions will then be updated by Binance every Tuesday.
The LUNC Burn Mechanism
From September 21, 2022, through October 2, 2022, trading fees on LUNC spot and margin trading will be determined as the first batch of burning fees. However, between September 21 and September 27, LUNC spot and margin trading fees refunds to the exchange’s Spot Liquidity Provider Program would be exempt from the burned amount.
Also, on Mondays at 00:00:00 (UTC), all LUNC trading fees that have been accumulated in other tokens like Binance Coin (BNB) will be instantly converted to LUNC and burned.
According to a statement from Binance: The LUNC burn method won’t have an impact on BNB fee refunds, fee discounts, or any other type of fee adjustment or fee discount. Starting on 2022-09-27 at 0:00:00 (UTC), the Binance Spot Liquidity Provider Program will halt fee rebates for LUNC spot and margin trading pairs.