Binance CEO Changpeng Zhao Rejects Terra 1.2% Tax Burn
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
- The community is pushing Binance to allow off-chain tax burning.
- The price of Terra Classic (LUNC) fell by about 10% in an hour.
In an Ask Me Anything session on Friday, Binance CEO “CZ” claimed that the cryptocurrency exchange will not implement a 1.2% tax refund for off-chain transactions using Terra Classic (LUNC) and USTC. With about 35% of all LUNCs on Binance, the price of Terra Classic (LUNC) fell by about 10% in an hour to $0.00024. Binance is being pressured by the community to allow off-chain tax burning, despite the CEO’s concerns that it would have a negative impact on Binance trading.
In an AMA on September 23, Binance CEO “CZ” claimed that the cryptocurrency exchange would support the Terra Classic community, but the 1.2% tax refund on off-chain transactions would affect the trade.
Binance has also set a 1.2% tax refund on both deposits and withdrawals. On-chain transactions such as spot trading, margin trading and Binance Earn services are exempt from tax burning.
The price collapses after the news
He predicts that the 1.2 percent tax burn will render blockchain applications irrelevant. If higher transaction costs discourage merchants, blockchain technology will lose much of its value. Due to community demand, Terra Classic (LUNC) taxes should be burned off-chain. However, the potential consequences of the plan make its implementation unlikely.
In a tweet, Binance CEO “CZ” revealed an alternative plan to apply 1.2% trading fees to the burn. He comes up with the idea of a voting system where users can choose to pay a 1.2 percent transaction fee.
The price of Terra Classic (LUNC) fell by about 10% in an hour after “CZ”, the CEO of Binance, said he did not support the 1.2% tax refund on off-chain transactions.
Recommended for you:
Binance Conducted $22M worth of Confused Transactions in Confusion?