The Terra collapse has to go down in the history as being one of the biggest crypto meltdowns. It literally went from 100 to Zero. Being one of the most promising, reaching a high of US$119 in April, its incredible run-up paved the way for its legendary downfall, causing mass panic and fear amongst crypto investors.
Although the catastrophic death spiral led to a series of events steering away investors’ interest in the space, Luna Classic Returns To The Top 30 in recent times. Almost in a meme-unique manner, pumping in price during the bear market.
Crypto.com supporting the tax burn
To revive LUNC, the Terra community has passed a proposal that will introduce a 1.2% tax burn for all on-chain transactions.
LUNC will use the Tax Burn method to lower the overall supply by burning tokens until it reaches there are 10 billion LUNC in circulation overall. Once that number is reached, this burning token mechanism will stop. The overall supply will stay at 10 billion.
Could this tie in with the run-up in the price? Maybe but we can’t be certain.
The passed proposal will go into effect on September 20 or at the block height of 9,475,200, Crypto.com is offering its support.
After the effective implementation of the tax burn, the deposit and withdrawals on Crypto.com will be affected in the following way:
As the exchange writes:
- “Deposits: Transactions will be taxed by the Terra Classic network before it reaches Crypto.com. The balance will be credited to your Crypto.com account after the 1.2% tax deduction by the network.
- Withdrawals: Users will receive the withdrawal amount minus withdrawal fees charged by Crypto.com and the 1.2% tax deduction by the network.”
Other centralised exchanges have also come out to support the implementation of the tax burn. This includes Binance, KuCoin, MEXC Global, Lbank, Huobi, Bitrue, Gate.io, CoinInn, and Kraken.
Like Binance, Crypto.com will only apply the 1.2% LUNC burn tax to the deposits and withdrawals of this cryptocurrency. In this way, the deposit and withdrawal of LUNC in Crypto.com will be taxed by 1.2% which will go directly to the burning of Terra Luna Classic.
Crypto.com is temporarily suspending deposits and withdrawals till the network upgrade is complete to ensure seamless implementation. The exchange will resume the deposits and withdrawals once the Exchange believes that the network has stabilized post-upgrade.
Also Read: Slaying The Bear Market: 5 Skills You Need To Excel In a Crypto Downturn
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief
