The infamous Terra ecosystem collapse, which erased market prices of TerraUSD (UST) and LUNA tokens, continues to worry concerned investors as co-founder Do Kwon, crypto exchanges, and the community work together to determine the best path for a sustainable price recovery.

Recently, Changpeng "CZ" Zhao, CEO of cryptocurrency exchange Binance, proposed a flat 1.2% trading tax on LUNC trades that could be burned in order to reduce the token's total supply and improve its price performance. CZ addressed the community, saying:

“We will implement an opt-in button [on the Binance exchange], for people to opt-in to pay a 1.2% tax for their LUNC trading.”

However, the exchange would start taxing opt-in traders after obtaining the approval of 25% of LUNC investors, ensuring that early adopters "are not the only few paying an extra 1.2%."

A 1.2% blanket trading tax will be implemented for all LUNC trading once opt-in traders reach 50% of the total LUNC trading volume on the exchange.

The recommendation divided the LUNA community, with some supporting CZ's decision to implement the opt-in button and others viewing it as market manipulation by a centralized entity.

CZ supports LUNC burning but believes in community voting, allowing platform traders to finalize the suggestion, adding, "We listen to and protect our users." However, the entrepreneur is aware that, unless the change is implemented across all exchanges and on-chain, LUNC traders will prefer moving assets to other exchanges that do not have the burn.

On the other end of the spectrum, South Korean authorities are attempting to locate and apprehend Kwon in connection with the Terra collapse.

Kwon and five other people were arrested on September 14 in Seoul, South Korea, for violating the country's capital markets law.

Posted 
Sep 25, 2022
 in 
Crypto News
 category

More from 

Crypto News

 category

View All

Join Our Newsletter and Get the Latest
Posts to Your Inbox

No spam ever. Read our Privacy Policy
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.