Binance Announces Support for LUNC and USTC Tax Burn on Terra Network

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  • Binance will be supporting LUNC and USTC tax burn.
  • Transactions will be taxed by Terra before they reach Binance.
  • Reportedly the tax deduction is 1.2%.

Binance, the largest cryptocurrency exchange by market value, has announced on its blog that it will examine and alter the minimum withdrawal amount, maximum withdrawal amount, and withdrawal fees for LUNC and USTC through the Terra Classic network. Importantly, proposals 3568 and 4159 have been approved by the Terra community and a 1.2% tax burn for on-chain transactions of LUNC and USTC on the Terra Classic network is in effect.

After the proposal has been put in, it is anticipated that the tax burn will become active on 2022-09-20 at a block height of 9,475,200 for the Terra Classic chain.

The blog post by Binance read that for deposits, transactions will be taxed by the Terra Classic network before it reaches Binance. The balance will be credited to your Binance account after the 1.2% tax deduction by the network.

Meanwhile, for withdrawals, “users will receive the withdrawal amount minus withdrawal fees charged by Binance and the 1.2% tax deduction by the network.”

It is relevant to know that members of the Terra community have been requesting that TFL burn a portion of the LUNC supply in order to reimburse investors for the damages they sustained as a result of the unpegging of UST from the dollar at the beginning of May 2022.

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