Changpeng Zhao proposed taxing transactions with Terra Classic

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The largest cryptocurrency exchange in the world will gradually introduce fixed taxation of transactions to improve the price characteristics of LUNC.

Binance CEO Changpeng Zhao recommended introducing a fixed transaction tax of 1.2% for transactions with Terra Classic (LUNC) to burn the token and reduce the overall supply in the market:

"We will introduce a subscription function on the site for the payment of transaction tax in the amount of 1.2% from transactions with LUNC. But we will start taxing only after 25% of LUNC investors sign up for burning tokens."

He added that a mandatory tax for all users will be introduced on the platform only after the volume of transactions of traders who have subscribed reaches 50% of all LUNC transactions on the exchange. Zhao's proposal divided the LUNA community into two camps. A number of users supported the decision of the CEO of Binance, while others perceive the decision as a tool of market manipulation.

Although Zhao supported the burning of LUNC, he believes that only a community vote will allow platform users to finalize the proposal on taxation of transactions with LUNC: "We listen to our users and protect them." Nevertheless, Zhao understands that if taxation is not introduced on all crypto exchanges and on the market, Binance users will prefer to move LUNC to other crypto exchanges that do not provide for token burning.

Recall that in May, the Binance cryptocurrency exchange placed Terra 2.0 (LUNA) in the innovation zone and opened trading in LUNA/USDT and LUNA/BUSD pairs on May 31.

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