By stating its support for Terra’s proposal to lower the LUNC and USTC Tax Burn Parameters, Binance furthered its backing for the Terra Classic project.
The largest exchange in the world by trade volume, Binance, has said that it will abide by the recent proposal 5234 adopted by the Terra community to lessen the tax burn for LUNC and USTC on-chain transactions.
According to what was previously stated, the request to lower the tax burn for all LUNC and USTC on-chain transactions from 1.2% to 0.2% was approved yesterday and will go into effect today at 12:50 UTC.
In light of this, Binance will likewise put the modifications into effect for all LUNC and USTC deposits and withdrawals on its platform.
The biggest exchange in the world announced that it would lower the consolidation cost for all Terra classic tokens from its previous level of 1.2% to 0.2%.
Once the proposal is implemented, the consolidation fee for withdrawals from USTC and LUNC will also be decreased from 1.2% to 0.2%. However, the usual exchange costs will still apply to deposits and withdrawals of Terra classic tokens, according to Binance.
This Action will Increase Terra Trading Volume
Remember that yesterday, after a week of voting, the Terra Classic community approved proposal 5234. The idea was introduced in response to the sharp fall in trading volume in USTC and LUNC.
The Terra Classic community members think many investors have turned away from the assets because of the 1.2% tax burn imposed on all on-chain transactions for LUNC and USTC.
Reducing the tax on LUNC and USTC, in the opinion of many, will increase the trading volume of cryptocurrencies and the number of tokens burned by exchanges.
As stated in the proposal, the community pool will get 10% of the 0.2% tax burn for LUNC and USTC on-chain transactions to finance development initiatives. The news represents the most recent effort on the part of Binance to assist the Terra Classic community.
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