Binance, the largest crypto exchange in trade volume, has decided to give its users the option of choosing whether to opt into the recently passed Terra Classic ecosystem proposal to implement a 1.2% tax burn on each transaction, including trades.
The team at the exchange announced the ability for users to choose via a blog post in which they explained that they would be adding an opt-in button for those who want to pay the 1.2% tax on their LUNC trading.
Binance Will Automatically Implement the Tax Burn When Certain Thresholds are Met
In addition, the team at Binance said that when the opt-in accounts reach a holding of 25% of the LUNC held on Binance, the exchange will automatically implement the 1.2% tax burn on all opt-in traders when they trade LUNC. The move is intended to prevent those who do not hold LUNC from affecting the determination of the opt-in feature. It will also ensure that the LUNC community will not be the only ones paying an extra 1.2%.
Furthermore, when the opt-in traders reach 50% of the total LUNC trading volume on Binance, the exchange will implement the 1.2% tax burn on all LUNC trading on the platform. The move aims to prevent large LUNC whales who do not actively trade from influencing the implementation of the feature.
Binance Could Remove the Opt-in Feature
If opt-in accounts do not reach the initial 25% of the LUNC held on Binance, the exchange will remove the opt-in feature ‘to keep to a simpler user experience.’
More on the 1.2% Tax Burn in the Terra/Luna Classic Ecosystem
The Terra Classic community voted to implement the 1.2% tax burn mechanism to reduce the total supply of LUNC and USTC.
Source : Binance Medium