The CEO of Binance, Changpeng Zhao, suggested a flat 1.2% trading fee on LUNC trades that may be burned in order to decrease the token’s supply overall and enhance price performance.
The CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, most recently suggested a flat 1.2% trading fee on LUNC trades that may be burned to reduce the token’s total supply and enhance its price performance. Speaking to the community, CZ said:
“We will implement an opt-in button (on the Binance exchange), for people to opt-in to pay a 1.2% tax for their LUNC trading.”
However, the exchange would start taxing opt-in trading after receiving approval from 25% of LUNC investors, ensuring that early adopters “are not the only few paying an extra 1.2%.”
Only once opt-in traders account for 50% of all LUNC trading volume on the exchange will a 1.2% flat trading tax be applied to all LUNC transactions.
The recommendation caused a rift in the LUNA community because some people backed CZ’s implementation of the opt-in button while others saw it as market manipulation by a single entity.
CZ supported LUNC burning but supported community vote, letting traders on the platform approve the proposal, saying, “We listen to and protect our users.” The businessman is aware that LUNC traders would prefer to transfer assets to other exchanges without the burn unless the modification is made across all exchanges and on-chain.