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Gungun Bhatia
Sep 21, 2022
by Gungun Bhatia

Crypto.com Announces Support for Terra Classic (LUNC) Tax Burn

Crypto.com

Table of contents

  1. Crypto.com To Support LUNC Tax Burn
  2. Impact on Deposits and Withdrawals
  3. Temporary Halt to Deposits and Withdrawals
The worst cryptocurrency crash in the market's history may have been the Terra-collapse LUNC in May 2022. The value of LUNA, the largest algorithmic stablecoin in the market and Terra's native token, virtually fell to zero in a week. The business was among the most successful before the disaster, achieving a record of $119.18 in April. However, the incredible rise opened the door for a historic crash. Investors and users became worried as a result of the death spiral.

The Terra community has approved a proposal that imposes a 1.2% tax burn on all on-chain transactions to revitalize LUNC.

Crypto.com To Support LUNC Tax Burn

The Terra community approved Proposals 3568 and 4159, which would impose a 1.2% tax burn on all LUNC transactions that take place on the Terra Classic network. The LUNC employs the Tax Burn method to lower the overall supply. This procedure will keep working until there are 10 billion LUNC in total circulation. Following that, the mechanism will be deactivated, and the overall supply will stay constant at 10 billion.

On September 20, 2022, or at the Terra Classic block height of 9,475,200, the tax burn is scheduled to come into action.

Impact on Deposits and Withdrawals

Deposits and withdrawals of LUNC made through the Terra Classic network will be impacted in the following ways once the tax burn becomes live:

Deposits: Before a transaction reaches Crypto.com, it will be charged by the Terra Classic network. After the network has deducted its 1.2% tax, the remaining amount will credit to your Crypto.com account.

Withdrawals: Users will get their withdrawal amount, excluding any fees incurred by Crypto.com and the network's 1.2% tax deduction.

Temporary Halt to Deposits and Withdrawals

Crypto.com is temporarily blocking deposits and withdrawals until the network upgrade is finished to enable the seamless integration of the tax burn. Once the exchange determines that the network has stabilized following the update, deposits and withdrawals will again be accepted.

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Crypto.com Announces Support for Terra Classic (LUNC) Tax Burn
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.

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