Since the fall of the Terra ecosystem, many investors have been wondering about the future of Luna Classic (LUC). If for a few weeks the crypto seems to be back on the front of the stage, the major question remains that of the Luna Classic burn. After a 1.2% tax cut Changpeng Zhao provides some answers.
CZ answers questions about LUNC
Questions about Terra have been piling up since a massive burn seems to be taking place with the Luna Classic token. Indeed, the crypto which is still suffering from hyperinflation still mobilizes a lot of investors. The Terra Army is far from having said its last word and it continues to make tweet in favor of crypto burn.
This burning mechanism will reduce the amount of tokens in circulation and make the crypto scarce. Other protocols like Shiba Inu have already used this method and it might work for LUNC. Given the extent of this burn, many investors are wondering if Binance will be in the game. Thus, Changpeng Zhao, the CEO of the largest crypto exchange platform has finally spoken on the subject.
In his AMA space Twitter, the latter answered the question about LUNC. According to him, it would be ideal to implement a feature that will allow users to self-opt for a 1.2% transaction fee for burning. Then we would have to see how many members of the electoral community do it first.
A 1.2% tax reduction for Luna Classic (LUNC)
The collapse of Terra Luna brought discredit to all native cryptos in the ecosystem. However, Luna Classic seems to be of particular interest to investors. Indeed, this cryptocurrency is more and more talked about and recently, a tax reduction of 1.2% was put into effect. This latest comes after weeks of anticipation and excitement.
With this going live, users will be charged a 1.2% tax on all on-chain transactions. This tax rate is expected to remain in effect until Luna Classic’s total supply drops to 10 billion tokens.
However, things seem a bit complex since the current supply is estimated at around 6.9 trillion tokens. Therefore, to achieve this objective, supply will have to be reduced by 99.82%. Based on investor sentiment, it will take many years, if not a decade, for LUNC’s supply to drop to 40 billion at a 1.2% burn rate.
But this is only possible if the price remains low. Thus, with a hypothetical market capitalization of 40 billion, there is a good chance that the price of the Luna Classic token will reach $1 within seven years.
Currently, Luna Classic (LUNC) is negotiate at $0.000246 and is down more than 10% in the last 24 hours. Will the massive burn and exit of Changpeng Zhao be powerful enough to drive crypto prices higher?
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Luna Classic burn: Changpeng Zhao gives users the choice!
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