Several exchanges have expressed interest in a tax burn of 1.2% Terra LUNA Classic (LUNC). Popular centralized cryptocurrency exchanges have continued to support the effort to apply a 1.2% tax burn for transactions employing Terra Luna Classic (LUNC) tokens.
Bitrue, a Singapore-based cryptocurrency trading platform, is the latest centralized exchange to declare support for LUNC’s 1.2% tax burn. In a blog post today, the exchange announced that the 1.2% tax burn will be imposed for all traditional Terra ecosystem tokens, including LUNC, USTC, MINE, ANC, STT, ORION, and C2X.
According to Bitrue, the 1.2% tax burn will only be applied to on-chain transactions involving the cryptocurrencies named.
Tax Burn Will be Implemented on The Terra Classic Network
On September 20, 2022, the long-awaited 1.2% tax burn will be put into effect on the Terra Classic network. Based on this, Bitrue announced that, in order to prepare for the 1.2% tax burn, it would upgrade the wallets of the chosen cryptocurrencies on September 19, 2022.
The deposit and withdrawal of tokens would be suspended during the update, according to the exchange, and would restart after it was finished.
All Terra Classic network token deposits and withdrawals on Bitrue will be subject to a 1.2% transaction fee following the tax burn.
According to a statement from Bitrue:
“Deposit transactions will be taxed by the Terra Classic (LUNC) network before it reaches Bitrue. The balance will be credited to your Bitrue account after the 1.2% tax deduction by the network. Withdrawals: Users will receive the withdrawal amount minus withdrawal fees charged by Bitrue and the 1.2% tax deduction by the network.”
Exchanges will impose a 1.2% tax on LUNC transactions
Bitrue has officially joined the list of centralized exchanges interested in executing the 1.2% tax burn for LUNC. Currently, eight exchanges, including Bitrue, have stated that they will support the idea whenever it becomes live.
Binance, KuCoin, Huobi, Gate.io, MEXC Global, Lbank, and CoinInn are among the other exchanges. While some exchanges, such as Binance, will only implement tax burn for on-chain LUNC transactions, others have stated that the idea will be implemented on both on-chain and off-chain LUNC transactions.
Both off-chain (trading) and on-chain (deposits, withdrawals) LUNC transactions will be supported by Kucoin, MEXC Global, and CoinInn.
The 1.2% tax burn proposal seeks to increase the price of LUNC by lowering the overall supply of the cryptocurrency. It’s interesting that those who own the cryptocurrency asset are supporting the campaign since they are committed to regaining their financial stability.
In addition to the burn plans, these investors have taken further steps to lower the amount of LUNC that is in circulation, such as staking the asset.
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