KuCoin has joined the list of centralized exchanges that have committed to support the 1.2% tax-burning proposal by the Terra Luna Classic community. Other CEXs that have committed to supporting the LUNC tax burn include MEXC, CoinInn, and Gate.io. MEXC was the first CEX to indicate that it will support tax incineration.
The proposed tax burn will result in a tax on all on-chain transactions between wallets and smart contracts using USTC and LUNC tokens.
In an official announcement, Kucoin said:
“Dear KuCoin users, KuCoin will support the tax-burning proposal of 1.2% 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 rises
Recent proposals and the introduction of LUNC burning and staking have pushed the price of the LUNC token more than 37,000% since its low after the TerraUSD (UST) crash.
The implementation of the 1.2% tax cut is expected to boost momentum and hopefully help push the price of LUNC above $0.0005. Under the proposal, the tax burn of LUNC will make a deflationary currency.
A vote on the tax-burning proposal is scheduled for no less than September 10, and implementation will begin on September 20 if the proposal is passed by a majority of the community.