By Nathan Ferguson
The notorious breakdown of the Terra ecosystem – which formerly reduced the market value of LUNA tokens as well as TerraUSD (UST) – is still creating issues for its investing entities and co-founder. Do Kwon and the Crypto community are endeavoring to find out a manageable way to retain its previous price level.
Changpeng Zhao Slashed by LUNC Investors over Suggesting 1.2% Tax on the Token’s Trade
Lately, Changpeng Zhao, who is the CEO of Binance (a well-known crypto exchange) has suggested a trading tax of an absolute 1.2% to be enforced on each LUNC trading activity. He is of the view that this tax will decrease the total stock of tokens as well as boost up price performance thereof.
Changpeng Zhao stated in his public speech that there will be an opt-in option on the platform of Binance. By using this option, LUNC traders can easily pay a trade tax. Although this tax will be implemented if almost 25% of investors ensure in the conducted consensus that this tax will be enforced on every LUNC trader not only on the former ones.
Moreover, enforcement of the trade tax will be carried out if the opt-in trader ratio reaches up to 50% of the full amount of the exchanges done through Binance. Once Changpeng Zhao got questioned on Twitter Spaces’ live session about opt-in. He answered that this will be available for the consumers for the burn. It will be observed how many users utilize it earlier than others for voting.
Binance CEO Recommends LUNC Investors to Vote by Paying the Suggested Tax
This announcement divided LUNA community members into two categories. One party is backing this suggestion while the others are perceiving it as an exploitation of a centralized system of exchange. CZ has said that Binance does consider its users’ interests that’s why the decision related to the implementation of the trade tax will be drawn upon traders’ votes.
Although, it has been reported that the enforcement of any tax can’t be made on some specific community until and unless it is applied on all the exchanges present on the blockchain. It is the possibility that, if traders do not find this suggestion feasible they will shift their assets to other exchanges, which do not offer a burn. Since the South Korean government found Do Kwon responsible for the Terra collapse, it is endeavoring to trace and arrest him.