Luna classic LUNC starts the week with the green color. A pump of 60% after a much desired announcement of the platform Binance. Indeed, the platform published that it has implemented a burn mechanism to burn all trading fees on cash and margin trades of LUNC. Previously, such a burn mechanism was only implemented for deposits and withdrawals.
Terra Classic’s (LUNC) burn mechanism on transaction fees
At its core, the LUNC burning mechanism will reduce the amount of tokens in circulation and make the crypto scarce. Luna Classic is becoming more and more talked about thanks to a famous 1.2% tax cut.
In fact, with this release, users are charged a 1.2% tax on all blockchain transactions. This tax rate is expected to remain in effect until the total supply of Luna Classic drops to 10 billion tokens.
However, the latest correction to the LUNC price came after Binance announced that the crypto-exchange would not apply the 1.2% tax cut for off-chain transactions involving LUNC.
In rejecting the tax burn, Binance CEO Changpeng Zhao noted that the implementation of the plan would impact trading on the platform. However, Binance has approved the rollout of the 1.2% tax cut on deposits and withdrawals. Notably, the Mexc platform is among the platforms that have decided to implement the tax burn. But uen announcement changed the game this Monday.
Indeed, in response to the LUNC community’s proposal, Binance will implement a burn mechanism to burn all trading fees on LUNC cash and margin trading pairs by sending them to the LUNC burn address.
The first calculations for the burn reports have not yet been published. They will be updated on October 3, exactly one week after the announcement.
Following this announcement, LUNC has increased so far by 56% in two days.
At the time of writing, the price of Luna classic LUNC is at 0.0003 USD, an increase of 32.19% over 24 hours. The crypto LUNC has a 24-hour trading volume of $2 billion, with a market cap of $1.9 billion.
Could it be that the burn tax mechanism is taking effect? To be continued