Following the recent announcement of Proposal 5234 passed by the Terra classic community which states that the LUNC 1.2% tax burn should be reduced to 0.2%, the largest crypto exchange, Binance, has been fostered by it as it implements the changes for LUNC and USTC on-chain transactions.
Binance Implements Tax Burn Proposal 5234
The new proposal came as a result of the drastic decline in the USTC and LUNC volume gotten since the inception of the LUNC 1.2% tax burn.
Furthermore, it is believed by the Terra classic community that the implementation of the LUNC 1.2% tax burn has driven a lot of investors and trading platforms away.
Per the new proposal, 10% of the 0.2% tax burn for LUNC and USTC on-chain transactions will be allocated to the community pool to fund development activities.
However, Binance’s support of the reduction in the 1.2% parameter marks the latest support of the exchange as it has recently supported the 1.2% parameter and at the moment, Binance is topping the LUNC Tax burner.
Binance initiated its first LUNC burn three weeks ago with over 5 billion which was not that pleasing to the Terra classic community as they expected something bigger from the Binance.
Following the first, Binance conducted its second burn with almost 3 billion summings the total burn to 8.5 billion and finally, Binance initiated the third round of burns with 2.5 billion making its total burn to be 11 billion.
Recall that in the course of Binance’s LUNC burn, it added UST Classic to its list of borrowable assets.
It is no doubt that Binance is a strong LUNC proponent as promised. Although, Binance supported the LUNC burn late but now is a prominent supporter of the LUNC burn.