With the global crypto market still anxious about Terra stablecoin’s infamous collapse, the CEO of Binance Changpeng Zhao recommended a flat 1.2% trading tax on LUNC trades. He says it could be burned to reduce the token’s total supply and improve its price performance.
Binance wants to implement an opt-in button for people to opt-in to pay a 1.2% tax for their LUNC trading. This will come about when the crypto exchange begins the taxation for opt-in traders following the consensus of 25% of the LUNC investors. It would make sure that early adopters are not the only few paying an extra 1.2%. CZ said 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.
However, this suggestion has split up the LUNA community. While some supported CZ’s decision for the opt-in button, some interpreted it as market manipulation from a centralized entity. Changpeng Zhao believes in community voting as it would allow traders on the platform to finalize the suggestion. Binance argued that it listens to and protects its users. CZ knows that unless the change is implemented across all exchanges and on-chain, LUNC traders would prefer moving their digital assets to other exchanges that don’t have the burn.