Crypto exchange Binance was forced to review its LUNC burning approach.
Binance, the largest crypto exchange in terms of daily trading volume, has announced its plans to burn the trading fees of Terra Classic (LUNC).
According to the announcement shared on Binance’s blog, the company has made the decision “in response to the LUNC community proposal.”
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The announcement outlined that “a burn mechanism” will be applied to all LUNC spot and margin trading pairs. More specifically, LUNC/BUSD and LUNC/USD trading pairs. The collected fees will be converted to LUNC and then sent to LUNC burning address.
It is worth noting that on September 23rd, Binance proposed an offer to create an optional 1,2% trading fee for LUNC. While announcing the new initiative Binance CEO and founder Changpeng Zhao noted that the tax will be released when traders who agree to pay the tax reach 50% of the total LUNC trading volume.
After the announcement, Changpeng Zhao used Twitter to overview the new proposal. According to the Twitter thread, Binance’s initial offer was not met with enthusiasm by LUNC community. Therefore, the company issued a faster and better way to support the community. Zhao stated:
This way we can be fair to all users. 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.
The burning mechanism rules note that “trading fees on LUNC spot and margin trading pairs to be burned from the previous week will be done every Monday,” moreover, the data about burned fees and weekly reports will be shared every Tuesday.
Based on the announcement, the first trading fees will be counted from September 21st to October 1st. Moreover, Binance claims the mechanism will not influence fee adjustments or discounts.
LUNC burn mechanism will not affect BNB fee discounts, fee rebates, or any other form of fee adjustment or fee discount. Binance Spot Liquidity Provider Program will pause fee rebates toward LUNC spot and margin trading pairs starting from 2022-09-27 at 00:00:00 (UTC).
In other news, Binance has recently collaborated with Eazy Financial Services (EazyPay) to allow crypto payments using Binance Pay in Bahrain.
