The Terra Classic community finally adopts proposal 5234. They did it to drastically lower the on-chain volume of LUNC and USTC, in order to boost development. This adoption is the result of several days of votes and debates. With the integration of this proposal, the tax consumption relating to chain transactions of LUNC and USTC via the Terra Classic network will drop from 1.2 to 0.2%. As for the formalization of the change, it takes effect at epoch 98, i.e. today at 12:50 (GMT).
Binance plans to update transaction fees for LUNC and USTC on Terra Classic
For a week, members of the LUNC community were in talks to vote on new resolutions. Finally, it was at the beginning of this week that the results were made public. The voters opted for the adoption of the resolution 5234which consecrates the reduced transaction fees for LUNC and USTC on the Terra Classic network. The Binance exchange plans to launch the changes as soon as the fee reduction process takes shape. This reduction concerns both deposit and withdrawal fees. Speaking of deposit fees on the Binance exchange, they will drop from 1.2% to 0.2%.
Prior to these changes, LUNC and USTC deposits required withdrawal fees set by other platforms. Regarding withdrawals, Binance will subtract the withdrawal fee as well as the tax consumption of 0.2% from the total amount to be withdrawn.
This vote at the beginning of the week showed the tremendous commitment of the Terra Classic community. The developers found that setting up a 1.2% tax investment caused the volume of trade to drop by almost 90%. This proposal to reduce fees would have met with some opposition. Indeed, some members of the community felt that the time was not yet propitious. Fortunately, the project could count on the support of top notch members like: TerraCvita, KuCoin, Edward Kim and more.
Conclusion
The Terra Classic community hopes that this reduction in the tax consumption metric will motivate exchanges to remove LUNCs from commercial activity. According Chanpeng Zhaothe boss of Binance, claims that applying the low fee entitles you to an even bigger burn.
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