Binance clarifies its position on the tax burning mechanism of “LUNC” and “USTC”
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Answer Binance clarifies its position on the tax burning mechanism of “LUNC” and “USTC”
Binance, one of the world’s largest cryptocurrency exchanges, said Thursday that a 1.2% tax rebate will be applicable to on-network transactions of Terra Classic (LUNC) and TerraClassicUSD (USTC).
Binance clarified that the tax burn will not apply to spot and margin trading of LUNC and USTC, as well as to Binance Earn services.
The community is disappointed with Binance for not considering the community’s request to support tax cuts on spot and margin trading.
Binance supports a 1.2% tax deduction for activities on the LUNC network:
In an official announcement yesterday, September 8, Binance announced its support for 1.2% tax burning.
Read:The New York Court sets the date for the first judicial hearing between Ripple and the “SEC”
Binance will review and adjust the minimum withdrawal amount, maximum withdrawal amount, and withdrawal fees for Terra Classic (LUNC) and USTC across the Terra Classic blockchain.
The Terra community has approved proposals 3568 and 4159, which will provide a 1.2% tax credit for transactions on the LUNC chain and USTC on the Terra Classic network.
The community is set to vote on a proposal to change the tax rate to 1.2% on September 10.
If passed, the changes will take effect on September 20.
Deposits and withdrawals to LUNC and USTC on Binance will be affected.
During the deposit, the Terra Classic network will deduct the tax at 1.2% and the balance will be credited to the user’s account.
During withdrawals, users will get the amount after the withdrawal fee is deducted by Binance and 1.2% tax deduction by the network.
However, the tax burn will not apply to spot and margin trading for LUNC and USTC.
In addition, it will not affect Binance Earn services such as stakes, savings, etc.
Terra community was expecting tax levies on LUNC and USTC trading.
Read:Binance announces the addition of the option to trade cryptocurrency against the Nigerian naira
Now, the community is unhappy with Binance and its CEO “CZ” for not listening to the community and his proposal to lower the cut-rate.
Validator LUNC DAO believes that Binance’s decision will make people stop trading on Binance.
Earlier today, Binance also announced the addition of the LUNC/USDT trading pair on September 9 at 08:00 UTC.
Currently, cryptocurrency exchanges such as MEXC Global, KuCoin, Gate.io, and CoinInn have expressed support for the 1.2% tax-burning proposal.
The community hopes that Binance will soon announce a 1.2% tax cut on off-network transactions.
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