The Terra ecosystem experienced a collapse that made the whole cryptosphere worried. The team behind the project continues to study possible solutions to relaunch the machine. It is in this sense that Changpeng Zhao, the CEO of Binance, proposed a daring solution.
According to CZ, the project is likely to get away with it if it accepts the addition of a flat tax of 1.2% on LUNC transactions. This solution was appreciated differently by the community.
There is no doubt that Terra needs a quick fix to get out of this. If Do Kwon, the co-founder does not have one yet, CZ has decided to bring his stone to the building.
Apply a flat tax on transactions
CZ believes that LUNC could reduce its total token supply in an effort to improve its price performance. The tokens that will be burned will come from a flat tax applied on LUNC transactions. According to the CEO of Binance:
“We will implement an opt-in button [sur la bourse Binance]so people can choose to pay a 1.2% tax for their LUNC trades.”
In this way the community can decide to support the project a little more so that it can be maintained. For this help to be consistent, CZ plans to add its button after the consensus of 25% of LUNC investors. He wants to avoid the discrimination that would penalize the first investors compared to the new ones.
Thus, former LUNC holders will not be the only ones to pay the 1.2% tax. This flat rate will begin to apply when opt-in traders are at 50% of the total trading volume on all exchanges.
A proposal diversely appreciated by the community
The LUNA community is divided after this proposal. On the one hand, some validated the recommendation to add an opt-in button. On the other, this proposal was rejected because according to them, Binance, which is a centralized exchange, will be able to manipulate this crypto-currency.
Despite his proposal to burn LUNC tokens, Binance CEO values โโthe community having a say. He believes he can count on the favorable opinion of investors to implement this strategy aimed at supporting the price of LUNC.
What he hopes even more is that this measure will be applied to all stock exchanges and to the Terra network. He is aware of the risk of investors withdrawing their tokens from Binance and putting them on another exchange that does not apply the flat rate and token burn.
