Reason behind #BoycottBinance on twitter:
Binance chief executive officer Changpeng Zhao (CZ) was asked a question “Binance would be impose its 1.2 percent tax on Terra Luna Classic off-chain transactions?”
CZ answered the question in a Twitter post by saying that Binance will add an opt-in button for those people who wants to write. He also published a blog post on twitter by introducing a “voting” mechanism for incineration. On September 9 Binance announced that it will impose a 1.2 percent tax burden only to on-chain transactions include deposits and withdrawals. To discourage users from trading LUNC on Binance, Changpeng Zhao has launched his latest post stating that off-chain exchange trading is not included.
Boycott Binance hashtag became a top trend on Twitter. The main reason behind this “#Boycott Binance” was the new policy of imposing a tax on LUNC coins transaction. When the LUNA crashed, everyone was skeptical of its return to the market, but another community called Terra persevered and developed another coin called LUNC. #BoycottBinance and Binance’s taxes policy are back in the news. Why the Binance Exchange and Terra community need this tax, how they will implement it, and how it will affect the coin’s price are key questions to be answered.
What is Taxburn?
Terra Classic Network has submitted a proposal to introduce a 1.2% burn tax on all LUNC and USTC transactions on all exchanges. This policy will help to create a steady supply of 12 billion LUNC The total number of LUNCs supply is about 6.9 trillion, while the Terra Classic network will burn out 99.82% of LUNCs. Reaching such landmarks is a challenge. How do they do it? There is a special mechanism for this. Will they succeed?
Some steps of opt-in button for burning:
Major cryptocurrency exchange Binance recently announced a 1.2% tax on all LUNC and USTC transactions. His CEO of Binance, Changpeng Zhao (CZ), has written a blog decisively outlining his plans to introduce a burning tax. And Boycott Binance topped the trend after the announcement of CZ.
Changpeng Zhao believes that unless all centralized exchanges impose this tax, Binance users will turn to other exchanges. Considering Binance’s tendency to boycott, the Binance community plans to complete it in three steps.
- In first step, Binance will add an opt-in button to the Binance website. A LUNC holder must decide whether he wishes to bear the 1.2% tax burden for each transaction. If necessary, the button should be turned on.
- According to CZ, in Step 2 tax collection, more than his 25% of LUNC holders collect tax on each of their transactions on the Binance exchange.
- If more than 50% of LUNC holders want the taxes to apply, Binance will apply this tax to all transactions of LUNC, regardless of the trader’s wishes or desires. This was the first step that started the #BoycottBinance trend.
Wrapping up:
Burning taxes are a good long-term strategy in the short term, but they are somewhat costly. Likewise, all exchanges should implement this tax once and for all, because if Binance alone implements this tax, its users will suffer consequences and the plan will not be as productive. I had this in mind.
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