Community Splits When Binance Proposes 1.2% Tax Burn With LUNC
Binance has officially backed the implementation of the proposed 1.2% burning tax on LUNC transactions. However, making the choice to participate is decided by Binance based on community voting. Therefore, the community is currently divided into two distinct factions.
As mentioned in the previous Couincu News article, CEO Changpeng Zhao offered an alternative to LUNC, exchange to introduce a feature that allows users to opt-in with a 1.2% transaction fee.
According to the proposal, once the opt-in account reaches 25% of the total LUNC held on Binance, the exchange will start charging a 1.2% tax to all traders who opt-in when they trade LUNC. In the case of 50% of traders participating, the exchange will apply a transaction tax of 1.2% to all LUNC transactions.
It is because the application of the proposal by the LUNC developers of the Binance exchange is left to the users to decide, so now the community is divided. On the one hand, users support CZ’s decision to implement an opt-in node, which showcases the decentralized spirit of the platform well.
However, in another development, the community considered this pointless as no one wanted to burn their own money, others interpreted it as market manipulation from a centralized entity. Thoughts were supported, but right after the announcement, the LUNC community got angry because everything didn’t seem to be entirely in their favor.
Previously, CZ made his stance clear on this episode as he thought that doing a write on Binance wouldn’t make much of a difference. According to CZ, the majority of LUNC traders will switch to other exchanges that won’t get burned. Furthermore, he does not believe that Binance will burn a significant amount of LUNC if they charge 1.2% per transaction.
The proposal made Fatman, a well-known account against Terra, recognized the Binance CEO “made a 300 IQ evil play“.
The proposed proposal has given investors hope for the future. However, after the arrest of the founder of LUNC Do Kwon caused the price of the token to drop, and the proposal from Binance made LUNC plummet. Currently LUNC is trading at $0.0002, down 8.14% within 24 hours.
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