While the burning MON was eagerly awaited and was a fulcrum for the recent token-related hype, what are the first results? In parallel, this Friday morning, CZ stated that Binance would waive the off-chain burn tax (particularly spot trading).
Rough beginnings for the LUNC burn
Scheduled for September 21, the start of the token burn MON had a rough start. In fact, adjustments to the Terra Classic blockchain were necessary after the difficulties of certain exchanges for introduce chain tax. In other words, the off-chain tax (at the moment not adopted by almost all exchanges) could also be complex if it were integrated in the future.
Therefore, it is currently still difficult to assess the results of the burning and future projections. Given the offer of the LUNC, it will take patience to see visible results. In fact, on Wednesday, September 21, “only” 80 million tokens were burned in the first 24 hours. Starting the next day, however, we could see a clear balance, with almost 400 million burned throughout the day. This is a clear increase as most exchanges (including Binance) are struggling to implement the tax. However, deposits and withdrawals from exchanges are very important as they are a very large source of LUNC token burn.
At the moment, the tokens burned thanks to the 1.2% tax are mainly due to activity in the dApps and the Terra Classic blockchain. This situation should continue, at least until the exchanges can solve the problems that prevent the implementation of the chain tax.
Also, some members of the famous Terra Rebels are on the front lines, with edward kim which is working closely with Binance so that the exchange can reopen taxable deposits and withdrawals as soon as possible.
Indeed, if not counting deposits to and withdrawals from exchanges, nearly 400 million LUNCs have been burned, the sum could rise sharply with the activity of crypto platforms. This could make it possible to give a more important role to the burning of the Terra Classic token and to evaluate with greater precision and over time the real capacity of the burning.
Changpeng Zhao: no to off-chain burn tax
At the same time, while Binance is in the process of resolving its internal burn tax-related issues, its CEO, Changpeng Zhao, continues to be closely watched by the Terra Classic community. Indeed, his activities and announcements are scrutinized daily by investors eagerly awaiting any comment on a possible off-chain burn tax application. Also, his regular receptiveness and initially positive attitude towards burning LUNC since the massive drop in the token price reminds him every time.
One thing is for sure, the LUNC community would certainly not hesitate to erect one or more statues in his honor or commemorate Changpeng Zhao as a hero if the latter proceeded with the off-chain implementation of the burn tax.
It would even seem thatan AMA between Binance is also planned and some members of the Terra Rebels. Perhaps an opportunity to learn more about each other’s intentions, but also to assess the relationship and collaboration between the Terra Classic “teams” and the exchange platform. However, Binance has yet to convey or deny anything; however, in the event of a confirmation, LUNC fans probably shouldn’t be asked to go and plead with CZ and the Binance crews about the off-chain burn some more.
However, this Friday morning, as part of a AMA on Twitter held by Binance and CZ, the long-awaited comments on the implementation of the off-chain burn tax have finally come. Although the topic was brought up during the first questions, CZ replied that Binance would not apply this off-chain tax first.
Indeed, eager to contribute positively to the LUNC project and its community, the CEO stated that if Binance were to apply this off-chain tax, the result could be negative for the community as traders would largely cease their LUNC trading activities. on Binance to avoid paying the 1.2% tax on each transaction. Therefore, CZ would avoid lowering LUNC volumes and reducing the usefulness of the token.
An announcement not without consequences on the price of LUNC, since in the process, the token fell from $0.00027 to $0.0002 with a red wick of more than 10%.
However, one last cheep of CZ in the afternoon leaves a door ajar to the off-chain burn tax on Binance for those who would like it, leaving the possibility for users to choose whether or not they want to have this tax during their transactions.
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