Binance, the world's largest cryptocurrency exchange platform stated that a 1.2% tax burn will apply to Terra Classic (LUNC) and TerraClassicUSD (USTC) on-chain transactions through the Terra Classic network.
In fact, the company will review and modify its minimum and maximum withdrawal amounts and withdrawal fees.
Therefore, the community should vote on the proposed 1.2% Tax Parameter Change on September 10 and if approved, the change will be implemented on September 20.
However, LUNC and USTC deposits and withdrawals will affect Binance because during deposits, the Terra Classic network will deduct a 1.2% tax and then the balance will be credited to the user's account.
While during the withdrawal, the user will get the amount after Binance deducts the withdrawal fee and when TerraClassic deducts the 1.2% tax.
Despite this, anger erupted among the Terra community when Binance and CEO Changpeng Zhao (CZ) mentioned that tax burning will not be applied to Spot and Margin trading for LUNC, USTC and the Binance Earn service.
This is because the Terra community expects the company to burn taxes on LUNC and USTC trades.
In the meantime, LUNC DAO validators are confident that Binance's decision will make many investors stop trading on Binance.
In fact, TerraRebel thinks that the Terra community managed to provide more than $2 billion in daily trading volume on the exchange including crypto exchange companies that have raised a lot of trading fees and profits from it.
