Terra Classic has gotten a network upgrade for LUNC validators. This upgrade has served well for the community. However, recently there has been an entire LUNC ecosystem collapse which has traumatized investors. The co-founder Do Kwon has convinced the community to join forces for sustainable price recovery.
They introduced a tax burning of 1.2% on all off-chain transactions to rebuild LUNC value. Changpeng Zao “CZ”, CEO of Binance, has however rejected forcing tax implications on all off-chain transactions. CZ has received a lot of backlash from the community about this since the community is split between collaborating with Do Kwon to help LUNC recover prices.
CZ recently mentioned in a tweet that it is in their users’ best interest to allow them to choose to pay the tax. Meaning, users will have the option to opt-in for the tax, to their wish giving users more liberty.
The crypto community still is having an ongoing debate on paying taxes for LUNC. Some say not helping a failed project recover will risk the decorum and reputation of the crypto community. On the other hand, we have some who say that LUNC is greedy to force tax implications on all off-chain transactions. Rather they should stick to burning taxes on their own chain to recover.
CZ has claimed that a tax burning of 1.2% on all off-chain transactions will hamper the growth of crypto markets. It will discourage users from trading diminishing the worth of cryptocurrency. Upon announcing this, Terra Classic has suffered a drop of 10% in just an hour. It has dropped by 11% in the past 24 hours.
Binance has been supporting LUNC by imposing the tax on withdrawals and deposits rather than on off-chain transactions. The community has been unsatisfied with CZ’s decision however, CZ is yet to budge from his decision saying allowing users to choose is their firm principle.
