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Sunday, December 4, 2022

LUNC Tax Burn Sees Exchanges Being Criticized Over Policies

With the upcoming LUNC tax burn mechanism gaining a lot of hype, some of the crypto exchanges have already started thinking that it would be a pretty good idea to lend their support. However, the rest of the crypto community responded heavily to this sentiment, with some calling out the exchanges for what investors consider to be nothing but a PR stunt.

On the 1st of September, Edward Kim, a member of the Terra community, put forward a proposal that would implement a 1.2% tax burn for every single on-chain transaction conducted by this crypto blockchain- which would be seen as a way of reviving the crypto industry. This transaction tax will be issued to a completely dead address, after removing a major part of the circulating supply entirety. After the proposal made the rounds in the community, the token increased by 250%, and with the hype, it showed major signs of life.

LUNC Tax Burn Could Revive The Cryptocurrency

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Due to this LUNC Tax Burn, several crypto exchanges like Gate.io, KuCoin, and MEXC Global decided to put forth their support for the token-burning efforts of the community of Terra. However, the rest of the industry wasn’t happy with what these crypto exchanges were doing- and decided to call them out.

After KuCoin decided to post an announcement expressing their support for the token burn, a pseudonymous Terra researcher called FatMan asked them why they were doing it in the first place. Also, they raised the question if the tax burn was being implemented on-chain, what was KuCoin doing about it? The researcher then suggested that this was nothing but a PR post, and one should try taxing actual trades instead. 

Interestingly, unlike the other crypto exchanges that only decided to support the LUNC tax burn through tweets, MEXC Global decided to hold a time-limited burning event for the token of LUNA.

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