CZ On Why Binance Is Burning LUNC Spot and Margin Trading Fees

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CZ On Why Binance Is Burning LUNC Spot and Margin Trading Fees
  • Binance decides to burn LUNC’s spot and margin trading fees.
  • Changpeng Zhao posts a Twitter thread explaining exactly what they’re doing and why.
  • LUNC surged 31.9% following the news.

Regarding trading costs for Terra Luna Classic (LUNC) tokens, the biggest cryptocurrency exchange in the world, Binance, has declared that it would introduce a burn mechanism to burn all tokens. Changpeng Zhao, popularly known as CZ, the founder of Binance, came to Twitter to conduct a thread about precisely what they are doing and why they are doing it.

They have reportedly had many conversations since his AMA on Friday regarding how Binance can better accommodate the LUNC community’s demands for TX tax burning.

“The last thing I said was we will implement an opt-in button. This has since changed,” Zhao said, sharing a link to their old blog post for reference.

The LUNC community, according to Zhao, is unhappy with this strategy. It will take some time for this to mature as well. He argues that their merchants wouldn’t have supported it even if it did work.

Therefore, they have started burning all trading fees on the Binance LUNC/BUSD and LUNC/USDT spot and margin trading pairings. Payments will be made in LUNC and delivered to the specified address. Binance, not its users, is responsible for covering the cost of the burn, says Zhao.

He concluded: “This way we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”

LUNC’s price surged following the news. The cryptocurrency has been up 31.9% in the past 24 hours.

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