Prominent crypto exchanges like Crypto.com and eToro support Terra Classic’s 1.2% tax burn for LUNC and USTC. eToro seems to provide tax burn for both on-chain and off-chain activities, whereas Crypto.com has only declared support for tax burn for on-chain activities.
The 1.2% tax burn was approved by most of the Terra Classic community. Actually, on September 21 at 06.20 UTC, at a block height of 9,475,200, the 1.2% tax burn was successfully implemented.
On-chain and Off-chain Activity
In addition to the standard 1% fee charged by the exchange platform, remember that the Terra Classic community has introduced a tax burn that will be imposed on deposits and withdrawals. Therefore, the 1.2% tax is split evenly between the parties.
Many other exchanges have only supported on-chain transactions, so eToro’s addition of burn-on-off-chain transactions is great news for LUNAtics (deposits and withdrawals).
“The tax and burn mechanism affects the operating costs associated with our offering of LUNC. As such, as of September 20, an operational fee of 0.6% will be added to eToro’s bid and ask prices for LUNC, on top of the standard 1% fee that is calculated when buying or selling crypto assets on eToro, “the exchange noted.
Crypto.com also backs Terra Classic’s 1.2% tax burn (LUNC). But the tax burn will only affect on-chain actions on the crypto exchange, like deposits and withdrawals.
After the network deducts the 1.2% tax during a deposit, the remaining amount is credited to the account. Taxes and a withdrawal fee equal to 1.2% of the amount taken out will be taken out by the network.
“To ensure the safety of users’ funds during and after the upgrade, we will temporarily suspend deposits and withdrawals of LUNC tokens during the network upgrade. The trading of LUNC tokens will not be affected. “
Major Exchange are Starting to Support Terra Classic Burn
Binance, Kraken, KuCoin, Huobi, MEXC Global Coinlnn, Gate.io, LBank, and BTCEX are among the other cryptocurrency exchanges that have shown their support for the tax burn.
Binance has declared that the company’s administration would decide on the implementation of the 1.2% tax burn for off-chain activity later. For the time being, the tax burn for Terra Classic (LUNC) on-chain activity is not supported by the exchange.