The collapse of the Terra ecosystem, which wiped out the market value of TerraUSD (UST) and LUNA tokens, continues to haunt worried investors, as co-founder Do Kwon, crypto exchanges and the community try to identify the best path for a sustainable price recovery. .
Most recently, Changpeng ‘CZ’ Zhao, CEO of crypto exchange Binance, suggested a flat 1.2% trade tax on LUNC trading to reduce the overall supply of the token and improve its price performance. Addressing the community, C.Z.
“We will implement an opt-in button (on the Binance exchange) for people to opt-in to pay a 1.2% fee for LUNC trading.”
However, the exchange will begin levying a 25% tax on opt-in traders following the LUNC investor agreement, which means early adopters “will not be the only few to pay an additional 1.2%.”
A blanket transaction tax of 1.2% is applied to all LUNC transactions only after opt-in merchants reach 50% of the total LUNC transaction volume.
I just answered his question about LUNC in a Twitter Space AMA.
Another option is to implement a feature that allows users to opt-in themselves for a 1.2% trade fee. And see how many voting communities do that first. Vote with your payment.
– CZ Binance (@cz_binance) September 23, 2022
The recommendation divided the LUNA community as some supported CZ’s decision to implement the opt-in button, while others interpreted it as market manipulation by a centralized entity.
CZ supported burning LUNC but believes in community voting, allowing merchants on the platform to finalize the proposal, adding, “We listen to our users and wait.” However, the entrepreneur knows that unless the change is implemented on all exchanges and on-chain, LUNC traders will prefer to move their assets to other exchanges that do not burn.
Related: South Korean authorities have asked Interpol to issue a ‘red notice’ for Do Kwon: Report.
On the other end, South Korean authorities are trying to track down Kwon in Terra’s fall.
On September 14, a court in Seoul, South Korea issued an arrest warrant for Kwon and five others for violating the country’s capital market law.