Binance CEO, Champeng Zhao
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Binance has announced updates to the deposit and withdrawal fees for LUNC and USTC on the Terra Classic blockchain.

This update is coming after the community passed proposal 5234.

Akujiro first presented the proposal for reduction in the tax burn from 1.2% to 0.2% and taking 10% of the collected seigniorage and adding it to the community pool at the end of the epoch.

The proposal, however, received 75% votes in affirmation as validators and other members of the community supported it based on Binance CEO CZ’s recommendation to reduce fees.

LUNC Proposal 5234 Update

According to Binance, the platform will reduce the 1.2% consolidation fee for all LUNC and USTC deposits received to 0.2%. On withdrawals – which means that users will receive the withdrawal amount minus withdrawal fees charged by Binance and the 0.2% tax burn.

Many prominent members of the crypto community, such as KuCoin, and Terra Rebels lead developers Edward Kim and Alex Foreshaw, have advocated for the proposal.

Kim, the co-author of the proposal, had recently affirmed that reducing the tax to 0.2% and allocating 10% of funds to the community pool for Terra Classic chain developments would be helpful as the community pool can be used for emergency funds.

The funds can be used to handle decentralized applications (DApps) and projects back to the Terra Classic chain, thereby repaying the devs to scale up the chain.

“As new validators come back, I believe we will naturally see an uptick in on-chain volume as validators attract new delegations. The uptick in volume will be confounded with the unlocking of new utility on the chain and thus may not be accurately measurable with the timing of this proposal.”

By Meekness Nnoka

Blockchain Analyst & Writer with top-notch Technological background. Enjoys reading and writing fascinating crypto contents. 4 years content creating experience.

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