LUNA Classic Up 33% After Binance Commits to Burn Trading Fees

Terra community previously approved a 1.2% tax on LUNC to limit the token’s supply


Luna token


key takeaways

  • Binance to burn trading fees at exchange’s expense, not users’, CEO says
  • The LUNC community wasn’t a fan of the crypto exchange’s original plan to have an opt-in button for people to pay the tax

Binance intends to burn trading fees on Luna classic (LUNC) — after Terra governance token holders voted to implement a relatively rare 1.2% tax for on-chain transactions to limit the token’s rapidly-rising supply. 

The crypto exchange is set to burn all trading fees collected on Binance for spot and margin trading pairs of LUNC and Binance USD (BUSD), as well as LUNC and Tether (USDT), the company said Monday

“Fees will be converted to LUNC then sent to the burn address. The burn is paid at our expense, not the users,” CEO Changpeng Zhao tweeted. “This way we can be fair to all users. The trading experience and liquidity remain the same, and Binance can still contribute to the supply decrease of LUNC, which is what the community wants.”

The specific amount of LUNC to be burned, its equivalent value in USDT, and on-chain transaction ID will be updated each week.

The Terra community previously approved a proposal to introduce a 1.2% tax burn for on-chain transactions of LUNC and USTC on Terra Classic network. 

The move came after the Terra blockchain imploded in May following algorithmic stablecoin terraUSD (UST) losing its peg to the dollar and the collapse of the LUNA token. LUNA stakers voted at the end of that month to rename the chain Terra Classic, with its native asset being LUNC.

Binance said in a blog post Friday that the exchange would implement an opt-in button for people to agree to pay their 1.2% tax for their LUNC trading. But Zhao said on Twitter that Binance’s plan had changed, saying that the LUNC community was not happy with this approach and that it would take awhile to develop.

LUNC’s price — at a fraction of a cent — was up roughly 33% in the last 24 hours, as of about 1:00 pm ET Monday. The token’s market capitalization stands at roughly $2 billion. 

Interpol has issued a global request to arrest Terraform Labs founder Do Kwon, Bloomberg reported. Though South Korean prosecutors said last week Kwon was “obviously on the run” from authorities, he denied those claims in tweets, saying at the time he did not “have anything to hide.”

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space


Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?


Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month


It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet


Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend


Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million