KuCoin commits to support Terra Classic 1.2% Tax Burn

KuCoin has joined the list of centralized exchanges that have committed to support the 1.2% tax burn proposal by the Terra Luna Classic community. Other CEXes that have committed to support the LUNC tax burn include MEXC, CoinInn, and Gate.io. MEXC was the first CEX to indicate that it will support the tax burn.

The proposed tax burn will result in a tax on all on-chain transactions between wallets and smart contracts involving USTC and LUNC tokens.

In an official announcement, Kucoin said:

“Dear KuCoin Users, KuCoin will support the 1.2% tax burn proposal of the Terra Classic (LUNC) community.”

According to the announcement, KuCoin will fully support the 1.2% tax burn once it is officially approved and implemented.

LUNC price surging

Recent proposals and the introduction of LUNC burning and staking have pushed the price of the LUNC token up by more than 37,000% since its lows after the TerraUSD (UST) crash.

The implementation of the 1.2% tax burn is expected to add more impetus to the momentum and hopefully help drive the price of LUNC above $0.0005. According to the proposal, the tax burn will make LUNC a deflationary coin.

A vote on the tax burn proposal is scheduled not less than September 10 with an implementation slated to begin on September 20 if the proposal is adopted by a majority of the community.