Terra Classic (LUNC) Transaction Fees Worth $4.5M Will Be Used Differently by This Top Asia Exchange

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Terra LUNC Community Approves New Measure to Reduce Tax Burn
Terra LUNC Community Approves New Measure to Reduce Tax Burn

Upbit, a highly rated South Korean exchange, has revealed that LUNC transaction fees charged during the Terra crisis will be channelled into multiple initiatives.

Upbit reported that during the Terra crisis, it received a total of 239.13025970 Bitcoin (BTC), which is worth $4.58 million at the current exchange rate.

The exchange established a committee to repurpose the LUNC transaction fees received during Terra’s downfall. According to a recent announcement, the transaction fees will be divided into three plans: short-term, medium-term, and long-term, as part of a larger effort to compensate investors for their losses.

During the dreadful Terra crisis, the LUNC fees were worth approximately $7.5 million. However, as Bitcoin fell below $20,000, its value plummeted to $4.58 million.

Related also: Terra Classic USD (USTC) is Now Available on Binance Cross-Border and Isolated Margins as a New Borrowable Asset

Upbit Makes Arrangement For LUNC Fees

According to a recent meeting of Upbit’s Luna Fee Utilization Committee, a portion of the fees will be donated to organizations assisting victims of the Terra collapse. A portion of the fee will also be used to create a whitepaper outlining the primary cause of the collapse. The paper will alert investors to other similar projects that may become operational in the future.

Long-term plans include the establishment of a digital asset monitoring centre to protect investors and promote fair market techniques. Notably, Upbit’s initial plan was to refund the fees to investors. However, during a meeting earlier this month, the Upbit Luna Fee Utilization Committee voted against the move, stating that it was not feasible.

Related article: New Proposal To Apply 1.2% Burn On All Terra Classic (LUNC) Spot Trades Proposed By Binance CEO

Ongoing Efforts to Recompense Terra Classic Investors

The Terra ecosystem’s demise remains one of the most talked-about events in the cryptocurrency world. Investors are still struggling to recover from the scandal as they try to make amends through community burn and staking.

Numerous crypto-related companies have launched various initiatives for Terra Classic investors as part of the community’s efforts to resurrect the token from the ashes.

Binance has launched a burn mechanism that will burn LUNC fees on spot and margin trading pairs, according to fxcryptonews. Korbit also stated that it would refund LUNC transaction fees to its users. The exchange, however, has not stated how it intends to do so.