Why is the price of the Terra Classic LUNC rising?
On CoinMarketCap, the Terra Classic LUNC is the 26th largest cryptocurrency,
At the time of writing, on CoinMarketCap, the Terra Classic LUNC is trading at $0.0005224, up 20.55% over the past 24 hours. its Market The cap was above $3.2 billion. Its trading volume has climbed more than 77 percent in 24 hours.
Earlier its market cap was around $3.5 billion.
In 24 hours, the coin is up almost 37% – compared to highs and lows of $0.0005888 and $0.0004299, respectively.
Compared to its all-time low of $0.0001675 on May 13 this year, the coin has gained about 3,051%.
The token has even outperformed the crypto leader Bitcoin which is up more than 1% and is trading at around $19,200. Furthermore, LUNC outperformed Ethereum, which is performing up around 5% at around $1,627.
Performance at the Terra Classic LUNC intensified after the Terra community passed a proposal for a 1.2% tax burn.
Furthermore, prior to today, Binance performed wallet maintenance for the Terra Classic Network (LUNC) for four hours at 6am. Business was not expected to be affected due to maintenance.
Terra Token’s journey this year has been bitter, mostly bitter. In mid-May, cryptocurrencies also weakened amid macroeconomic uncertainties fueling a deep bearish tone in global markets. The worst hit was the Terra Token USD which eroded its peg of $1, and its sister Luna which hit the zero level. This reportedly led to an amount of $40 billion wiped out. The Terra crash has made many investors, exchanges and firms poor. The cryptocurrency market is still in the recovery phase from the Terra crash.
In May this year, TerraForm Labs co-founder Do Kwon launched Terra 2.0, whereby, the original Terra series has been rebranded as Terra Classic, while a new series called Luna has been created with the existing name Terra. and was made available for trade.
Terra Classic’s 1.2% Tax Burn Proposal
The Terra Community has passed resolutions 3568 and 4159, under which a 1.2% tax burn will be introduced for on-chain transactions of LUNC and USTC on the Terra Classic network.
These proposals are being developed to change the tax parameter from its current value of 0 to 0.012 (1.2%).
According to Terra Governance, a 1.2% tax will apply to all currency denominations currently available on-chain, including LUNC and USTC.
Terra’s 1.2% tax burn is expected to go live after the offer is submitted on September 9 at the Terra Classic block height of 9,475,200.
Crypto Exchanges Supporting Terra Classic LUNC’s 1.2% Tax Burn Proposal
On Thursday, Binance announced that they will be reviewing and revising the minimum withdrawal amount, maximum withdrawal amount and withdrawal fee for LUNC and USTC via the Terra Classic network.
Binance highlighted that once the tax burn goes live, deposits and withdrawals of LUNC and USTC via the Terra Classic network will be affected in the following way:
Deposits: Transactions will be taxed before the Terra Classic network reaches Binance. The balance will be credited to your Binance account after the network deducts 1.2% tax.
Withdrawals: Users will receive the withdrawal amount minus the withdrawal fee charged by Binance plus a 1.2% tax deduction by the network.
“Spot and margin trading for LUNC and USTC, as well as relevant services on Binance Earn (eg, Binance Staking, Binance Savings), will not be affected by this tax burn,” the Changpeng Zhao-backed cryptocurrency exchange said.
Other cryptocurrency exchanges MEXC Global, Kucoin and Gate.io have announced their support for Terra Classic’s 1.2% tax proposal.
In its notification, Gate.io said on September 6, “Gate.io supports the community development proposal as always. Once the proposal is approved, we will implement the proposed on-chain burn on LUNC and USTC. As an exchange. As such, trading of LUNC and USTC are not on-chain activities and will not be taxed. If you want to avoid potential on-chain tax on deposits, it is highly recommended that you trade LUNC and USTC on 12 September Please submit on Gate.io beforehand.”
Meanwhile, on September 7, Kucoin said they would support a “1.2% tax burn when the proposal is officially approved and implemented on the Terra Classic (LUNC) mainnet.” Furthermore, the crypto exchange assured that the services on KuCoin will remain unchanged if the community does not approve the proposal.
“To avoid a potential increase in deposit fee costs, we strongly recommend users to deposit all Mainnet Terra Classic (LUNC) tokens into KuCoin before September 12, 2022,” KuCoin said.
Similarly, a day earlier, MECX said, “When the proposal is officially implemented on the Terra Classic (LUNC) mainnet, MEXC will support a 1.2% tax burn.” Ensuring that the services on MEXC will remain unchanged, the crypto exchange suggested investors to deposit all Mainnet LUNC tokens before 12 September to avoid deposit fee costs.
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