Cryptocurrency exchange Binance has announced updates on deposit and withdrawal fees for LUNC and USTC cryptocurrencies on the Terra Classic network.
This comes after the community approved Proposition 5234, first submitted by Akogiro, to cut the transaction tax burn from 1.2% to 0.2% and take 10% of the collected proceeds and add it to the community at the end of the era.
The proposal received 75% of the performing vote, as other members of the community supported it on the recommendation of the CEO of Binance, who earlier also proposed a fee reduction.
LUNC 5234 Suggestion:
According to Binance's announcement, the trading platform will reduce the fee from 1.2% for all LUNC and USTC deposits received to 0.2%.
On withdrawals, users will receive the withdrawal amount minus the withdrawal fee charged by Binance and the estimated 0.2% tax burn.
Several prominent members of the community, such as KuCoin and Terra Rebels, have called on lead developers Edward Kim and Alex Furisho to propose a fee cut.
Kim, the co-developer of the proposal, explained that lowering the tax to 0.2% and allocating 10% of the funds to the community group to develop the Terra Classic network would be beneficial because that money could be used for development as well as emergencies.
As for development, decentralized applications (DApps) and projects can be drawn back into the Terra Classic blockchain, thus paying developers to scale the network.
Kim added:
With the return of new auditors, I think we will naturally see an increase in volume on the network as auditors attract new delegations.
Binance Effect on LUNC:
Binance played an important role in increasing the burn rate through the decision to burn the LUNC trading fee as Binance initially ignored the idea of tax burn.
Next, I planned to introduce a subscribe button for those who would like to apply burn.
But later, the CEO of Binance decided to implement a mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the burning address LUNC.
Binance also revealed that a new 0.2% LUNC tax burn will take effect and the price of the LUNC cryptocurrency suffered new drops this week.
