LUNC price soars as Binance decides to burn trading fees
Binance has agreed to burn all fees on LUNC spot and margin trading pairs in response to proposals from the LUNC community. Binance stated that the trading fees and margin trading pairs would be sent to LUNC burn addresses.
Binance made the announcement via a blog post on its official website. The Terra Classic community was dissatisfied with the Binance CEO's proposed 'opt-in button.' Binance provided an opt-in button that allowed users to choose whether or not to implement a 1.2% tax burn on their spot.
Binance decided to take note of the community's discontent and set a new proposal after serious review and analysis. However, Binance realized during their evaluations that implementing an opt-in proposal would take time, and traders might not support it. As a result, a better and faster method of aiding the Terra Classic community was offered.
Binance's New Burn Mechanism Details On Tera Classic Spot
Binance stated that the amount of LUNC to be burned, its USDT equivalent, and on-chain transaction ID would be updated regularly. Furthermore, the blog announcement specified the rules that would govern the burn mechanism.
Every Monday at 00:00:00 UTC, Binance would calculate the total trading fees on LUNC spot and margin trading pairs to be burnt from the previous week. On Tuesdays at 00:00:00 UTC, further on-chain burn transactions and reports would be updated.
From September 21 at 00:00:00 UTC through October 1 at 23:59:59 UTC, the first batch of burned trading fees would be calculated. From September 21 to 27, 2021, this would exclude rebates on LUNC spot and margin trading pairs under the Binance Spot Liquidity Provider Program.
On Mondays, Binance would also convert the trading fees from other tokens to LUNC. Binance's CEO indicated that the company would not impose burn costs on users. The Terra Classic burn would have no impact on BNB fee discounts, rebates, or any accrued fee adjustments.
The CEO went on to say that they plan to maintain the same trading experience and liquidity while ensuring a decrease in LUNC supply.
The price of LUNC skyrockets by 70% after Binance's announcement
Binance's tremendous support for the Terra community led to favourable LUNC pricing. Following the announcement, the price of LUNC soared by more than 70%.
The issuance of a red notice by Interpol against Do Kwon, the founder of Terraform Labs, had a negative impact on the price of LUNC. Interpol issued the Red Notice against Kwon on September 26, according to South Korean authorities.
Following the announcement, the LUNC price decreased by over 20%, while the LUNA price fell by 18%. It was selling at less than R0.0036 but is now at R0.0058.
