Changpeng Zhao, CZ, of Binance, said that after these three steps, LUNC 1.2% burn would be implemented on spot trading.
CZ builds on Binance’s vision by instituting a 1.2% burn on all LUNA Classic (LUNC) spot trading activity.
CZ outlines how the exchange plans to apply the 1.2% burn on spot trading activity in a blog post published Friday following an Ask Me Anything (AMA) session on Twitter in which the Binance CEO presented a compromise to imposing the 1.2% burn on spot trading activity.
According to the blog post, it will be a three-step process. Binance will initially build an opt-in button that would allow users to choose whether or not to pay the 1.2% tax on their LUNC trading activity.
Second, after users who opt-in account for 25% of the LUNC stored on the exchange, the tax will be applied to those who chose to pay.
Finally, after the opt-in accounts account for 50% of the overall trading volume, the exchange will implement the fee on all trading activity in step 3.
However, it is worth noting that there are certain restrictions.
“If the threshold for Step 2 cannot be reached within a month of the completion of Step 1, or falls back below the threshold in the future, we will remove the opt-in feature to keep to a simpler user-experience,” the blog post states.
Notably, CZ’s suggestion yesterday was welcomed as equitable by many in the Terra community, and if successful, may represent a significant step forward for the community on its route to reducing LUNC supply. Binance continues to have the highest LUNC trading volume, with almost $370 million in LUNC volume in the previous 24 hours.
Wu blockchain, a well-known cryptocurrency media news source, writes:
“According to Binance, When the opt-in accounts reach a holding of 25% of the total LUNC held on Binance, we start to charge 1.2% tax for all opt-in traders when they trade LUNC. When reaching 50%, we will roll out the 1.2% trading tax for all LUNC trading.”
Over 950 million LUNC have been burned since the community implemented the 1.2% LUNC tax burn plan on Wednesday. The supply remains about 6.9 trillion, a far way from the aim of 10 billion. However, burns are on the rise, with over 455 million people burned only yesterday.