Binance will not apply Terra Classic tax burn to spot trade on exchange

admin September 9, 2022

0 2 minutes read

Binance has announced that it will not support the burning of $LUNC tax into spot or margin trades made on the exchange.Luna Classic Governance suggestion 3568 and 4159 passed to add a 1.2% tax to all on-chain transactions with a block height of 9,475,200.

However, exchange transactions are managed through an internal order book and not settled on-chain. Only deposits and withdrawals are registered on-chain, ensuring fast transaction settlement. DEXs allow users to trade on-chain, so a 1.2% tax burden will apply, but other exchanges may follow Binance’s lead.

Binance applies taxes on all deposits and withdrawals, according to the company’s press release issued on Thursday.

“Deposits: Transactions will be taxed by the Terra Classic network before reaching Binance. Balances will be credited to your Binance account after a 1.2% tax deduction by the network.

Withdrawals: Users will receive the withdrawal amount minus withdrawal fees charged by Binance and a 1.2% tax deduction by the network. “

KuCoin also announced on Wednesday, “support” Burn your taxes. However, they were unable to declare whether they apply tax on transactions, but confirmed that it applies to withdrawals and deposits.

In practice, all exchanges are registered on-chain between the exchange and the customer’s wallet, so they have to support the tax burden of deposits and withdrawals. The announcement that the exchange supports the tax is just public relations positioning. Still, Binance provided some new information in terms of not honoring trade burnout.

FatmanTerra responded to KuCoin’s announcement by confirming that it “cannot opt out” and that “no exchange has ever done it before” and supported a tax burn on the transaction.

Given that the burn tax is enforced on-chain, how do you “support” anything here? You cannot opt out. This applies to all deposit and withdrawal transactions. His PR post for Nothingburger. Taxing the actual *transactions* is newsworthy, but no big exchange does that.

— Fat Man (@FatManTerra) September 7, 2022

KuCoin took full advantage of the added attention late Thursday, prompting the Luna Classic community to speculate on the price.

👀 What is your price prediction #lunch At the end of 2022?

— KUCOIN (@kucoincom) September 8, 2022

However, one exchange, MEXC Global, supports burning all physical trades for a limited time. The exchange fee for the $LUNC pair will be updated to 1.2% on September 3rd and will continue until September 17th. All transaction fees are burned daily and displayed on MEXC. website.

to support an incineration tax proposal from #terra classic $LUNC community, #MEXC Starts a limited-time burning event $LUNC/USDT spot trading fees 🔥

⏰ Event period: September 3rd 10:00 to September 17th 10:00 (UTC)

detail: https://t.co/ocus94MDgu #terra classic #terra #teraluna pic.twitter.com/M8fUNmd6S1

— MEXC Global (@MEXC_Global) September 3, 2022

To date, on Sept. 9, MEXC has consumed approximately $154 million in LUNC (worth approximately $79,500).Exchange said “We will decide whether to extend the event based on feedback from MEXC users.”