Crypto exchange Binance on Wednesday announced changing the Terra Classic (LUNC) burn tax from 1.2% to 0.2%. The Terra Classic community successfully passed Proposal 5234 to reduce the tax to 0.2% and set 10% for the community pool to finance Terra Classic ecosystem development and contributors. The consolidation fee for on-chain transactions such as withdrawals and deposits on Binance will be reduced to 0.2%.
Binance Changes Terra Classic Tax to 0.2%
As per an official announcement on October 19, Binance will update the burning tax on on-chain transactions including deposits and withdrawals from 1.2% to 0.2%. It will be applicable to all Terra Classic (LUNC) and TerraClassicUSD (USTC) deposits and withdrawals. However, the change will not apply to the off-chain tax burn of trading fees on LUNC spot and margin trades.
Binance will reduce the 1.2% burn tax on LUNC and USTC deposits received to 0.2%. However, deposits may or may not have exit fees charged by other crypto exchanges or platforms.
During withdrawals, users will receive the withdrawal amount after exit fees charged by Binance and a 0.2% tax burn by Terra Classic chain.
Terra Classic community introduced and passed Proposal 5234 after Binance CEO “CZ” recommended reducing the fees to increase LUNC trading, which may increase the LUNC burn rate.
Terra Rebels lead developers Edward Kim and Alex Foreshaw also supported Proposal 5234. Moreover, Terra Rebel introduced a proposition for the Terra Classic Grants Program to ensure the transparent and efficient use of funds in the community pool.
The 0.2% tax burn on Terra Classic and USTC deposits and withdrawals will take effect at epoch 98, estimated on October 19 at 12.50 UTC.
