The Binance CEO, Changpeng Zhao “CZ”, has proposed an alternative for the exchange to introduce a feature that allows users to pay 1.2% trading fees on LUNC trades rather than implement the 1.2% tax burn.
Among other notable exchanges, Binance has expressed support for the Terra Classic (LUNC) on-chain 1.2% burn tax. Nonetheless, the majority of these exchanges, including Binance, have shown no willingness to implement the tax burn on spot trades.
The reluctance has not been well received by the Terra community, as most supporters insist on the proposal’s full implementation. Regardless, CZ stated that he would address the issue’s concerns during an AMA meeting with the Terra community.
Terra Rebels’ Twitter space on September 23 featured CZ, who acknowledged the complaints made by LUNAtics. Regardless, CZ made a suggestion that would satisfy both parties.
“Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for the burn. And see how many of the voting community do that first. Vote with your fees,” CZ said in a tweet following the meeting.
Related article: Terra Wallet’s Interface Updated to Include LUNC Burn Rate
Binance has remained hesitant to implement the tax burn on a large scale because the exchange is concerned about losing customers by charging an additional 1.2% fee on trades.
However, Binance’s CEO proposes something new: an optional 1.2% LUNC burn feature on Binance; most Terra supporters have expressed satisfaction with Binance’s CEO proposal thus far. A prominent LUNAtic described the suggestion as “a great middle ground.”
“BREAKING NEWS: cz_binance proposes an OPTIONAL 1.2% $LUNC burn on all spot trades! I think this is a great middle-ground to get other exchanges onboard,” the individual noted in a tweet.
The burn address is available to anyone who wants to burn 1.2% of their balance. Nobody will be able to stop them. Anyone who does not want to pay a 1.2% tax on their spot transactions can simply ignore this feature and continue to pay the standard trading fee.