Binance Updates Modifications in Terra Classic Burning Mechanism

• Binance announced a modification in the Terra Classic Burning Mechanism.
• The method of crediting the deposits and charging the withdrawals would be modified.
• A consolidation fee of 1.2% would be charged to all the deposits.

Binance announced that the company would modify the method of crediting LUNC and USTC deposits. The top cryptocurrency exchange claimed that there would be modifications in the mode of implementing charges over the withdrawal and charges imposed by other exchanges would also be applied to the LUNC and USTC deposits on Binance.

Binance updated the information regarding the deposit and withdrawal fees on its official site.

Apart from the updates regarding the deposits, Binance mentioned the withdrawal scheme stating that:

 Users will receive the withdrawal amount minus withdrawal fees charged by Binance and the 1.2% tax burn.

After an interactive session with his followers, Binance CEO, Changpeng Zhao, announced that the company would put forward a mechanism in which the trading fees on LUNC spot and margin trading pairs would be burned, by sending them to the LUNC burn address,  which would benefit the traders.

When Binance announced the Terra Classic Burning mechanism, LUNC, which had been facing a massive decline in its price had a sudden hike. Soon after the announcement, LUNC jumped by almost 50% yesterday.

Following the announcement, Binance put forward a plan to apply a consolidation fee of 1.2% to all deposits on Binance. The program suggested the idea that the users wouldn’t receive the total amount upon withdrawal due to the withdrawal fees and 1.2% tax. The initial trading fees on LUNC spot and margin trading pairs would be estimated between September 21 and October 1. It is to be noted that the burning amount would not include the fee rebates on LUNC spots and trading pairs.