Binance proposes 1.2% trade fees to burn old Luna coin supply

Changpeng Zhao proposed a unique strategy to burn the supply of LUNC coins.

Binance is a popular top-ranked crypto trade platform known for its user-friendly crypto exosystem for the crypto traders. Due to better services, Binance is leading the whole crypto industry as a leader to push crypto education as well as crypto adoption.

On 23 September, During a Twitter space AskMeAnything discussion, Changpeng Zhao, CEO of Binance exchange, talked about the strategies to reduce the supply of LUNC coins.

One of the proposal from Zhao was to increase the LUNC coin trade fees by 1.2%.

I answered the question about LUNC in my Twitter Space AMA just now.

Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for burn. And see how many of the voting community do that first. Vote with your fees.

— CZ Binance (@cz_binance) September 23, 2022

In a detailed explanation, Zhao talked about this thing via a dedicated blog post, where he said that implementation of a 1.2% tax burn per transaction is not enough on the Binance exchange because there are possibilities that other Exchanges may not follow the same thing. 

Zhao said that Binance is planning to allow the customers to opt-in and when these accounts will reach around 25% of the total LUNC coin balance of Binance then the exchange will start with start 1.2% tax burn fees. 

“we start to charge 1.2% tax for all opt-in traders when they trade LUNC. This prevents people who don’t hold LUNC to affect the votes. It also gives the early adopters peace of mind that they are not the only few paying an extra 1.2%. The tax only kicks in at 25% quorum,” Zhao said

Further Zhao proposed the third step to introduce a 1.2% trade fee charge for all the users when trade value reaches 50% of the total LUNC balance on Binance. 

Opposite of this proposal, Binance’s CEO said that they will revoke this plan if 1.2% tax fees charged to opt-in accounts will not touch 25% of the total LUNC fund on Binance, to make the ecosystem of Binance fully simple.

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