LUNC investors react to CZ’s 1.2% transaction tax recommendation on Binance

The infamous collapse of the Terra ecosystem that wiped out the market prices of TerraUSD (UST) and LUNA tokens prompted co-founder Do Kwon, cryptocurrency exchanges, and the community to work together for a sustainable price recovery. continue to pester concerned investors as they try to identify the best route for .

Recently, Changpeng ‘CZ’ Zhao, CEO of cryptocurrency exchange Binance, recommended a flat 1.2% transaction tax on LUNC transactions to reduce the total token supply and improve price performance. did. Addressing the community, CZ said:

“We will implement an opt-in button (on the Binance exchange) so that people can opt-in to pay the 1.2% tax on LUNC transactions.”

However, the exchange will start taxing opt-in traders following a 25% consensus of LUNC investors, making sure that “it’s not just early adopters who pay the extra 1.2%.”

The 1.2% inclusive transaction tax will be applied to all LUNC transactions only after the opt-in trader reaches 50% of the total LUNC trading volume on the exchange.

I just answered a question about LUNC in my Twitter Space AMA.

Another option is to implement a feature that allows users to choose their own transaction fee of 1.2%. And see how many in the voting community do it first.

— CZ Binance (@cz_binance) September 23, 2022

The recommendation split the LUNA community as some supported CZ’s decision to implement an opt-in button, while others interpreted it as market manipulation from a centralized entity.

CZ supported the burning of LUNC, but believed in community votes and allowed traders on the platform to finalize the proposal, adding that it “listens to and protects its users.” . However, entrepreneurs recognize that LUNC traders prefer to move their assets to other exchanges unless the change is implemented on all exchanges and on-chain.

Related: South Korean authorities ask International Criminal Police Organization to issue ‘red notice’ for Dokwon: report

On the other side of the spectrum, South Korean authorities track down Kwon and seek to arrest him for the fall of Terra.

On September 14, a court in Seoul, South Korea, issued arrest warrants against Kwon and five others for violating the country’s capital market laws.