Binance announced on September 26 that it would follow the fee burn path with cryptocurrency by using trading fees generated from LUNC trading.
Fee burns are one method of removing currencies from circulation without taking tokens away from investors or penalising those investors who possess the tokens.
The entire community has been working to maintain the value of Terra Classic (LUNC), and Binance has consistently been at the forefront of this. The community enthusiastically supported the suggested 1.2% transaction fee burn, which raised the cryptocurrency price.
The supply of LUNC is now being further decreased due to the new trading fee burn mechanism introduced by Binance.
Earlier, it was suggested that a 1.2% tax burn be applied to all LUNC trading activities on the cryptocurrency exchange, but Binance had objected to this because it feared backlash from angry users.
The CEO of Binance, Chanpeng Zhao (CZ), claims that the cryptocurrency exchange instead sought “a better and speedier way to help the community.”
The cryptocurrency exchange revealed on September 26 that it would be adopting a trading fee burn method for all Margin and Spot trading activities.
Every Monday at 00:00:00 UTC, it intends to perform a planned weekly burn using all trading fees realised during the previous week.
The exact 24 hours after each burn, a weekly report and an on-chain burn transaction will be made accessible.
Binance stated its strategy for the first batch of trading fees to be burnt, “Trading fees for LUNC spot and margin trading pairs will be calculated from 2022-09-21 at 00:00:00 (UTC) to 2022-10-01 at 23:59:59 (UTC).”
Binance further said, “The fee rebates on LUNC spot and margin trading pairs toward the Binance Spot Liquidity Provider Program for the period of 2022-09-21 at 00:00:00 (UTC) till 2022-09-27 at 00:00:00 (UTC) shall be excluded from the burn amount.”
Before each burn, Binance intends to transform all trade commissions earned from trading activity in other cryptocurrencies like BUSD, USDT, and BNB to LUNC. The burn will not have any impact on discounts, charges that have been refunded, or any other fee modifications or discounts.
We can treat all users fairly in this approach, stated CZ on Twitter. “The liquidity and trading experience remain unchanged, and Binance can still help to reduce the supply of LUNC, which is what the community expects.”
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