In an effort to compensate Terra investors, many cryptocurrency exchanges recently declared they would support the upcoming Terra Luna Classic (LUNC) 1.2% tax burn.
MEXC Global, KuCoin, and Gate.io are a few of the top exchanges worldwide that have declared they will implement the 1.2% tax burn for LUNC once the proposal is implemented on Terra’s mainnet, as was previously reported.
A fascinating development is that Binance is also considering applying the 1.2% tax burn for LUNC. The biggest trading platform in the world, Binance, announced today that it would perform wallet maintenance for Terra Classic Network’s LUNC. On September 8, 2022, at 06:00 (UTC), maintenance work will start and last for four hours.
“Binance will perform wallet maintenance for Terra Classic Network (LUNC) at 2022-09-08 06:00 (UTC). The maintenance will take about four hours,” Binance said.
The exchange will stop accepting deposits and withdrawals of LUNC tokens during the scheduled maintenance. But trading would start as usual.
Proposed 1.2% Tax Burn for LUNC
Notably, Terra investors believe that the 1.2% tax burn proposal is the only way to fully compensate for the losses they sustained when the project’s stablecoin UST lost its peg to the dollar in May 2022.
According to the proposal, a 1.2% tax must be applied to all LUNC transactions. The tax-earned coins will be permanently removed from the token’s supply, increasing the coin’s value and luring new investors.
Recall that in May, the CEO of Binance joined Terra’s group of investors and urged the Terra team to buy back or burn some of LUNC’s supply to increase the coin’s value. These requests, however, went unanswered because the Terra team decided to pursue a completely different strategy in its effort to provide compensation for LUNC collapse victims.