Tax Burn for LUNC and USTC on Terra Classic (LUNC) Network

The Terra community has passed proposals 3568 and 4159 to introduce a 1.2% tax burning mechanism for on-chain transactions of LUNC and USTC on the Terra Classic (LUNC) network.

Binance will review and adjust the minimum withdrawal amount, maximum withdrawal amount and withdrawal fee for the Terra Classic (LUNC) network LUNC and USTC.

According to Terra’s governance, these proposals were created to change the tax parameter from the current 0 value to 0.012 (1.2%) and apply to all token types currently available on-chain, including LUNC and USTC.

After the proposal is submitted, the tax and fee burning mechanism is expected to be launched at the Terra Classic (LUNC) network block height 9,475,200 on September 20, 2022.

After the tax burning mechanism, the deposit and withdrawal of LUNC and USTC through the Terra Classic (LUNC) network will be affected as follows:

Deposits: User deposits will be taxed by the Terra Classic (LUNC) network before reaching Binance.

After deducting 1.2% tax, the balance will be credited to the user’s Binance account.

Withdrawal: The withdrawal amount received by the user will be deducted from the withdrawal fee charged by Binance and the 1.2% tax on the network burn.

Spot and leveraged transactions of LUNC and USTC, as well as related services of Binance Wealth Management (for example: Staking, Binance treasure) will not be affected by this tax burning mechanism.

Go to Binance’s Official Website