menuIcon
$ 88,010.4
BTC
$ 88,010.4
0.88 %
$ 2,062.82
ETH
$ 2,062.82
-0.37 %
$ 0.7675
ADA
$ 0.7675
2.00 %
$ 630.68
BNB
$ 630.68
-1.49 %
$ 144.24
SOL
$ 144.24
0.97 %
Gungun Bhatia
Sep 26, 2022
by Gungun Bhatia

Binance To Implement Terra Classic Burn Mechanism On Trading Fees

Binance burn mechanism

Table of contents

  1. Off-Chain Burn Mechanism
  2. Announcement of Modified Plan
  3. Rules for Burn Mechanism
Binance will introduce a burn mechanism to burn all trading costs on LUNC spot and margin trades by sending them to the LUNC burn address, following the LUNC community's suggestion on burning trading costs while keeping a positive trading user experience. This notification will be revised every week until further notice with the precise quantity of LUNC to be burnt, its equivalent in USDT, and the on-chain transaction ID.

Off-Chain Burn Mechanism

Binance has unveiled an off-chain burn mechanism in assistance of the Terra community's efforts to restore the Terra LUNA Classic (LUNC) coin. The exchange changed its burning strategy in response to the community's conflicting opinions.

The exchange will impose an optional 1.2% fee when trading LUNC, according to a blog post by Changpeng Zhao, CEO of Binance, on September 23. Zhao stated that the 1.2% tax would be implemented for all LUNC trading if traders who want to pay the tax account for 50% of the entire volume of LUNC trading on the exchange, leaving users' choice.

Announcement of Modified Plan

Zhao exposed the shortcomings of their prior strategy a few days after the post. As a result, Binance announced a modified plan to encourage the revival of LUNC. Zhao claims that the exchange will now totally burn every trading charge it gets from its spot and margin trading pairings for LUNC/BUSD and LUNC/USDT. The fees will be turned to LUNC and delivered to the LUNC burning address.

The CEO of Binance thinks that by doing this, the exchange would be capable of reducing the supply of LUNC and serving all users fairly.

Rules for Burn Mechanism

Binance also introduced some rules and regulations regarding the burn mechanism:

  • LUNC spot and margin trading fees are calculated every Monday at 00:00:00 (UTC) for the previous week.

  • LUNC spot and margin trading fees will be calculated from 2022-09-21 at 00:00:00 (UTC) to 2022-10-01 at 23:59:59 (UTC).

  • Each Monday at 00:00:00 (UTC), fees collected on LUNC spot and margin trading pairs will be converted to LUNC with Binance's real-time exchange rates.

  • BNB fee discounts, fee rebates, or any other fee adjustment or discount will not be affected by the LUNC burn mechanism.

    • Follow us on: News
    USDT Binance lunc Terra LUNA Classic (LUNC) Burn Mechanism
    Binance To Implement Terra Classic Burn Mechanism On Trading Fees
    Gungun Bhatia
    Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

    Top Picks