Saturday 3 December 2022
Home / none / LUNC investors react to CZ’s 1.2% trading tax recommendation on Binance

LUNC investors react to CZ’s 1.2% trading tax recommendation on Binance

The infamous collapse of the Terra ecosystem, which erased market prices of TerraUSD (UST) and LUNA tokens, continues to trouble anxious investors as co-founder Do Kwon, crypto exchanges and the community together try to identify the best route for a sustainable price recovery.

Most recently, Changpeng “CZ” Zhao, the CEO of crypto exchange Binance, recommended a flat 1.2% trading tax on LUNC trades that could be burned to reduce the token’s total supply and improve its price performance. Addressing the community, CZ stated:

“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 begin the taxation for opt-in traders following the consensus of 25% of the LUNC investors, making sure that early adopters “are not the only few paying an extra 1.2%.”

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

The recommendation split up the LUNA community, as some supported CZ’s decision to implement the opt-in button while others interpreted it as market manipulation from a centralized entity.

CZ backed LUNC burning but believes in community voting, allowing traders on the platform 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 would prefer moving assets to other exchanges that don’t have the burn.

Related: South Korean authorities ask Interpol to issue 'Red Notice' for Do Kwon: Report

On the other end of the spectrum, South Korean authorities are trying to track down and arrest Kwon for the Terra collapse.

On Sept. 14, a court in Seoul, South Korea, issued an arrest warrant for Kwon and five other people for violating the country’s capital markets law.

Original Article

About Jude Savage

Check Also

The future of smart contract adoption for enterprises

Decentralized finance (DeFi) markets may have cooled down over the past year, but the technology powering these applications continues to advance. In particular, smart contract platforms that enable transactions to take place across DeFi applications are maturing to meet enterprise requirements. While it’s notable that enterprises have previously shown interest in DeFi use cases, smart contract limitations have hampered adoption. A report published by Grayscale Research in March puts this in perspective, noting that “Despite handling millions of transactions per day, smart contract platforms in their current state would be incapable of handling even 10% of the worlds’ internet traffic.” This notion is particularly troublesome considering the market opportunity behind DeFi. For instance, Grayscale Research’s report mentions that DeFi and Metaverse applications combined are likely to have a market capitalization much larger than the current digital asset market. How smart contracts ar..

Leave a Reply

Your email address will not be published. Required fields are marked *