Crypto Exchange Binance Unveils New Fee Burn Mechanism For LUNC

Crypto Update
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The mission to keep the value of Terra Classic (LUNC) has been undertaken by the entire community, and Binance has managed to always be at the forefront of this. The proposed 1.2% transaction fee burn was fully supported by the community, which caused the value of the digital asset to surge. Now, Binance has joined in with a new trading fee burn mechanism that would help to further reduce the supply of LUNC.

Binance Plans To Burn LUNC

One way to take coins out of supply without taking tokens from or harming the investors who hold the tokens has been through fee burns. Binance has announced that it will be going this route with the cryptocurrency by burning trading fees realized from LUNC trading.

Previously, it had been proposed that a 1.2% tax burn should be placed on all LUNC trading actives on the crypto exchange, but Binance had kicked against this as it feared retaliation from disgruntled users. According to Chanpeng Zhao (CZ), the CEO of Binance, the crypto exchange had instead looked for “a better and quicker way to support the community.”

On Monday, September 26th, the crypto exchange announced that it would be implementing a trading fee burn mechanism for all Spot and Margin Trading activities. It plans to take all of the trading fees realized in the space of a week and carry out a scheduled weekly burn every Monday at 00:00:00 UTC. An on-chain burn transaction and a weekly report will then be made available exactly 24 hours following each burn.

Binance has planned for the first batch of trading fees to be burned, which it stated to be; “trading fees on LUNC spot and margin trading pairs to be burned will be calculated from 2022-09-21 at 00:00:00 (UTC) to 2022-10-01 at 23:59:59 (UTC).” It further added that “The fee rebates on LUNC spot and margin trading pairs toward Binance Spot Liquidity Provider Program for the period of 2022-09-21 at 00:00:00 (UTC) till 2022-09-27 00:00:00 (UTC) will be excluded from the burn amount.”

Binance plans to convert all trading fees in other cryptocurrencies such as BUSD, USDT, and BNB realized from trading activities to LUNC before each burn. Discounts, fees rebated, and/or all other fee adjustments or discounts will be, in no way, affected by the burn. 

“This way, we can be fair to all users,” said CZ on Twitter. “The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”

Featured image from Times Tabloid, charts from TradingView.com

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