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

0
10

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

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

“We will implement an opt-in button (on the Binance exchange) for people to choose to pay a 1.2% tax for their LUNC trade.”

However, the exchange would begin the taxation for eligible traders following the consent of 25% of the LUNC investors, ensuring that early adopters “are not the only few paying an extra 1.2%.”

A full trading tax of 1.2% will be implemented for all LUNC trading only after eligible traders reach 50% of the total LUNC trading volume on the exchange.

The recommendation divided the LUNA community as some supported CZ’s decision to implement the subscribe button while others interpreted it as market manipulation by a centralized entity.

CZ supported LUNC burning but believes in community voting, allowing traders on the platform to finalize the suggestion, adding, “We listen and protect our users.” However, the entrepreneur is aware that unless the change is implemented across all exchanges and on-chains, LUNC traders would prefer to move assets to other exchanges that do not 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 September 14, a court in Seoul, South Korea, issued an arrest warrant against Kwon and five other people for violating the country’s capital markets law.