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CZ’s Take on LUNC and Luna Crisis

by BSCN

September 26, 2022

Opt-in option for Binance users on implementing burn tax on LUNC transactions.

Recently, Changpeng Zhao, aka CZ, the CEO of Binance was asked on Twitter about how Binance is going to support the LUNC burn of 1.2% for every trade on Binance.

CZ’s take on LUNC

CZ began by saying that as a business they (Binance) would not even consider “implementing something that isn’t done on the protocol level first.”

Then, he listed the following things that Binance would follow:

1. Implementing an opt-in button, for people to opt-in to pay a 1.2% tax for their LUNC trading.

2. When opt-in accounts reach a holding of 25% of the total LUNC held on Binance, they will start to charge 1.2% tax for all opt-in traders when they trade LUNC.

3. When the opt-in traders reach 50% of the total LUNC trading volume on Binance, Binance will roll out the 1.2% trading tax for all LUNC trading.

I answered the question about LUNC in my Twitter Space AMA just now.

Another option is to implement a feature to let users opt-in for a 1.2% trading fee themselves for burn. And see how many of the voting community do that first. Vote with your fees.
— CZ 🔶 Binance (@cz_binance) September 23, 2022

Explaining further, CZ said that almost everyone would want all the platforms and chains to burn 1.2% at every transaction and things change when it affects the balance, Until the time almost every centralized exchange implements this, things will not work out, he added.