Crypto Exchange Binance Unveils New Fee Burning Mechanism for LUNC
The mission to preserve the value of Terra Classic (LUNC) has been carried out by the entire community, and Binance has managed to always be at the forefront of this. The proposed burn of 1.2% transaction fee was fully supported by the community, causing the value of the digital asset to increase. Now, Binance has joined a new trading fee burning mechanism that will help further reduce the supply of LUNC.
Binance plans to burn LUNC
One way to take coins out of supply without taking tokens from or hurting the investors who hold the tokens has been through fee burns. Binance has announced that they will go this route with the cryptocurrency by burning trading fees realized from LUNC trading.
Previously, it had been proposed that a 1.2% tax burn be placed on all LUNC trading assets on the crypto exchange, but Binance had kicked against this as they feared retaliation from disgruntled users. According to Chanpeng Zhao (CZ), CEO of Binance, the crypto exchange had instead been looking for “a better and faster way to support the community.”
On Monday, September 26, the crypto exchange announced that it would implement a trading fee burning mechanism for all spot and margin trading activities. It plans to take all the trading fees realized during a week and conduct a scheduled weekly burn every Monday at 00:00:00 UTC. A chain burn transaction and a weekly report will then be made available exactly 24 hours after each burn.
Binance has scheduled the first batch of trading fees to be burned, as it stated to be; “Trade fees on LUNC spot and margin trading pairs to be burned will be calculated from 2022-09-21 00:00:00 (UTC) to 2022-10-01 23:59:59 (UTC).” It further added that “The fee discount on LUNC spot and margin trading pairs against Binance Spot Liquidity Provider Program for the period 2022-09-21 00:00:00 (UTC) to 2022-09-27 00:00:00 (UTC) will be excluded from the combustion quantity.”
Binance plans to convert all trading fees in other cryptocurrencies such as BUSD, USDT and BNB realized from trading activities to LUNC before each burn. Discounts, fee discounts and/or any other fee adjustments or discounts will in no way be affected by the burn.
“This way we can be fair to all users,” CZ continued Twitter. “The trading experience and liquidity remain the same, and Binance can still contribute to the supply reduction of LUNC, which is what the community wants.”
Featured image from Times Tabloid, charts from TradingView.com
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