Changpeng Zhao says CZ, the CEO of Binance, recommended a 1.2% flat tax on LUNC transactions. The idea is to reduce the total supply of the token and improve its price performance in the market.
What is LUNC
The collapse of the Terra ecosystem continues to have repercussions today. This ecosystem of digital assets, which was worth around $40 billion, collapsed in May 2022 in what may have marked the biggest meltdown in crypto history.
UST, once the largest algorithmic stablecoin, and its sister token LUNA, which was supposed to stabilize UST’s price, fell to near zero within a week. Before the collapse, UST and LUNA were among the top 10 cryptocurrencies.
The Luna Classic (LUC) was born from this collapse and replaced the LUNA token. This one was born from his Luna recovery plan imagined by the manager, Do Kwon. Indeed, after the implosion of the Terra network, the community approved a plan to revive the project. leaving many people confused about the new names. Here is a guide to the two different Terra blockchains and the tokens that belong to them. On the other side of the spectrum, South Korean authorities are trying to find and arrest Do Kwon for the LUNA meltdown. On September 14, a court in Seoul issued an arrest warrant for Kwon and five others for violating the country’s financial market law.
The CEO of the Binance exchange has recommended a flat tax of 1.2% on LUNC transactions. Speaking to the community, CZ said he wants to implement an “opt-in” button (on the Binance exchange), so that users of the platform can choose to pay a 1.2% fee for their transactions in MON. A global tax of 1.2% will be applied to all transactions on LUNCs when opt-in traders have reached 50% of the total transaction volume.
The recommendation divided the LUNA community. Indeed, some supported CZ’s decision to implement the opt-in button. Others interpreted the recommendation as market manipulation by a centralized entity.
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