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.

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.