Terra Luna Classic will have its own burn mechanics that will affect the Luna circulating supply in the form of the Luna Classix tax burn, supported by Binance.
In recent Luna Classic news, LUNC soared to new heights, before crashing hard. The new V22 upgrade had a positive impact on the token. Like the SHIB burn and Ethereum burn, the Luna Classic burn will make the token deflationary.
The tax proposal has been supported by several leading crypto exchanges from Binance to Huobi. Let's find out more about what this 1.2% tax burn proposal for Terra Luna Classic is all about.
What is the Terra Luna Classic tax burn?
The Terra Luna Classic tax burn is is a 1.2% fee applied to Luna Classic activity, set to burn LUNC from September 20.
This burn gained approval on Terra Station via a proposal vote.
Luna Classic recently soared past predicted metrics and reached a recent high of $0.00058436. The token, formerly known as Luna, crashed 100% in May 2022 in the Luna crypto crash. It was here when Luna burns first began. Its recent price increase, and subsequent decrease, have attracted the attention of many.
Luna Classic is once again gaining interest due in large part to the proposal to apply a 1.2% tax burn mechanism on the token.
The 1.2% tax burn proposal was first introduced in June but was altered and re-introduced recently by a community member named Edward Kim on the official Terra Luna Classic forum.
The new proposal intends to address the supply issue of Luna Classic by introducing a 1.2% tax burn.
This transaction tax will be implemented on all on-chain activities on the Terra Luna Classic mainnet. The tax will also be applied to transactions conducted via web3 wallets and smart contracts. The main motivation behind the burn is to make Terra Luna Classic a deflationary asset.
If the burn had failed to win the community over, the new dev team of the would have launched an unofficial website followed by a desktop and mobile app to execute the burns.
- Read More: How to stake Terra Luna Classic
Terra Luna Classic tax burn gains Binance, Huobi, and BTCEX support
The tax burn has already been green-lit by leading exchanges such as Binance, Huobi, and BTCEX.
To facilitate smooth Terra Luna Classic withdrawals and deposits, Binance has already issued a detailed statement adding that the exchange will:
Review and amend the minimum withdrawal amount, maximum withdrawal amount and withdrawal fees for LUNC and USTC via Terra Classic network.
Crypto exchange Gate.io has also extended its support for the Terra Luna Classic burn.