News LUNC: burn triggered and CZ against the burn tax in off-chain (for the moment?) – BeinCrypto International

While the LUNC burn was highly anticipated and has been a fulcrum for recent token-related hype, what are the early results? In parallel, this Friday morning, CZ affirmed that Binance would not apply the off-chain burn tax (Spot trading in particular).

Difficult beginnings for LUNC’s burn

Scheduled for September 21, the start of the LUNC token burn had a rocky start. Indeed, adjustments to the Terra Classic blockchain were necessary after the difficulties of certain exchanges to introduce the on-chain tax. Suffice to say that the off-chain tax (for the moment not adopted by almost all exchanges) could also be complex if it were to be integrated in the future.

Source : Twitter

Thus, it is currently still difficult to assess the results of burn and future projections. Given the supply of the LUNC, it will be necessary to be patient to see visible results. Indeed, on Wednesday, September 21, “only” 80 million tokens were burned in the first 24 hours. From the following day, however, we could see a clear assessment, with nearly 400 million burned over the whole of the day. This is a clear increase as the majority of exchanges (including Binance) are having difficulty implementing the tax. However, deposits and withdrawals from exchanges are very important, since they constitute a very large source of burn of LUNC tokens.

For the moment, the tokens burned thanks to the 1.2% tax are mainly due to activity on dApps and the Terra Classic blockchain. This situation should continue, at least until the exchanges can resolve the problems that prevent the implementation of the on-chain tax.

In addition, some members of the famous Terra Rebels are on the front line, with Edward Kim which is working closely with Binance so that the exchange can reopen taxed deposits and withdrawals as soon as possible.

Source : Twitter

Indeed, if without counting deposits on exchanges and withdrawals from them, nearly 400 million LUNCs have been burned, the sum could increase considerably with the activity from crypto platforms. This could thus make it possible to give a more important role to the burn of the Terra Classic token and to evaluate more precisely and over time the real capacity of the burn.

Changpeng Zhao: no to the off-chain burn tax

At the same time, while Binance is in the process of solving its internal problems related to the application of the burn tax, its CEO Changpeng Zhao is still closely watched by the Terra Classic community. Indeed, its activities and announcements are scrutinized daily by investors who are impatiently awaiting any comment on a possible application of the burn off-chain tax. Moreover, his regular receptivity and his initially positive attitude towards the burn of LUNC since the massive fall in the price of the token, are reminded of him each time.

Source : Twitter

One thing is certain, the LUNC community would undoubtedly not hesitate to erect one or more statues in his honor or to commemorate Changpeng Zhao as a hero if the latter proceeded with the off-chain application of the burn tax.

It would even seem thatan AMA is also planned between Binance and some members of the Terra Rebels. Perhaps an opportunity to learn more about the intentions of each, but also to assess the relationship and collaboration between the “teams” of Terra Classic and the exchange platform. However, nothing has yet been relayed or denied by Binance; however, in case of confirmation, LUNC fanatics should probably not be asked to go and beg a little more CZ and the Binance teams about burn off-chain.

However, this Friday morning, as part of a WADA on Twitter held by Binance and CZ, the long-awaited comments on the off-chain burn tax implementation have finally taken place. While the subject was brought to the table during the first questions, CZ replied that Binance would not first apply this tax off-chain.

Indeed, eager to contribute positively to the LUNC project and its community, the CEO asserted that if Binance applied this tax off-chain, the result could be negative for the community, since traders would largely cease their trading activities. of LUNC on Binance to avoid paying the 1.2% tax on each transaction. Thus, CZ would avoid lowering LUNC volumes and reducing the usefulness of the token.

Source : Twitter

An announcement not without consequence on the price of LUNC, since in the process, the token fell from $0.00027 to $0.0002 with a red wick of more than 10%.

Source : Binance

However, one last Tweet de CZ in the afternoon leaves a door ajar to the off-chain burn tax on Binance for those… who would like it, leaving the possibility for users to choose whether or not they wish to have this tax during their transactions spots.


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News LUNC: burn triggered and CZ against the burn tax in off-chain (for the moment?) – BeinCrypto International

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