USTC volume spikes 206% as exchanges reduce Terra Classic burn tax rate

Lavina Daryanani
Source: Coingape

The Terra Classic community recently green-flagged proposal 5234, which reduced the 1.2% tax burn to 0.2% and reserved another 10% tax revenue for the ecosystem infrastructure and contributors. Outlining what the proposal intended to achieve, the developer description noted,

This proposal aims to signal to CEXs and other on-chain users that we would like to keep the tax while using its revenue efficiently by funding the costs associated with development, the LCD endpoint, and costs related to contributions for past-and-present contributors, either individuals or organizations.”

The proposal had an 82% vote rate, with KuCoin reportedly voting for the first time. The new tax rate came into effect a day back at epoch 98.

Exchanges pour in support of Terra Classic

A day back, the largest crypto exchange Binance posted an update with respect to its support of proposal 5234. Its blog post noted,

“Binance will reduce the 1.2% consolidation fee for all LUNC and USTC deposits received by Binance to 0.2%. “

It, however, clarified that LUNC and USTC deposits to Binance would still be subject to the withdrawal fees charged by other exchanges or platforms. also followed suit and announced today that it will be “supporting the Tax Burn for LUNC on Terra Classic (LUNC) Network.”  

In fact, other top exchanges like OKX and KuCoin also green-flagged the said initiative.

Luna Classic, as such, did not react much on the price front on Thursday. After noting a 1.6% uptick in the 24-hour timeframe, LUNC was trading at $0.0002508 at press time.

However, another coin from the terra ecosystem, TerraClassicUSD was up by 14% owing to the development. The said algorithmic stablecoin was the top gainer on Friday but was valued only at $0.039.

Source: CMC

Its trade volume, nevertheless, noted a whopping 206% incline over the past 24 hours. Per data from CMC, the centralized volume stood over $110 million, while the decentralized exchange volume amounted to roughly $327k.

Source: CMC