Top US Exchange Kraken To Support Terra Classic (LUNC) 1.2% Tax Burn

Kraken to Support Terra Classic (LUNC) 1.2% Tax Burn.

Kraken has released an official report showing support for the 1.2% tax burn proposal on LUNC transactions.

Terra Classic (LUNC) has recently caught the attention of the broader crypto community with its latest comeback. In addition to its promising price movements, the asset has received high-spirited support from LUNAtics. 

This support also comes in the 1.2% tax burn proposal aimed at reducing the asset’s massive supply. So far, certain exchanges have shown support for the tax burn. California-based exchange Kraken is the latest in line to do this.

Kraken announced its support for the LUNC 1.2% tax burn through a tweet and on its official website on Wednesday. 

ℹ️ Update regarding Terra Classic (LUNA) and TerraUSD Classic (UST) on Kraken following the “tax burn” proposals.

Check out our Support Center article for more details?https://t.co/1Q1wric5mF pic.twitter.com/sqsWQCG1Vh

— Kraken Exchange (@krakenfx) September 14, 2022

In the official announcement, Kraken informed all users to be conscious of the fact that the platform will incorporate a fee as a means to implement the 1.2% tax burn on LUNC and UST on-chain transactions. Concerning LUNC and UST deposits, Kraken says, “When depositing LUNA or UST on Kraken, the deposit transaction must include the 1.2% tax in its transaction fee.”

Kraken also instructed users to consider an additional “1.2% sweep fee” that it would deduct from the deposited amount.

“When moving LUNA or UST off Kraken, transactions will be taxed by the Terra Classic network before they reach your external address. The balance will be credited to your external wallet, minus the 1.2% tax deduction by the network,” Kraken noted regarding withdrawals.

For now, readers must note that Kraken is not applying Burns on LUNC trading.

Kraken noted that the presented changes would take effect following the submission of the proposal. The exchange puts this at 6 AM (UTC) on September 21, at the LUNC block height of 9,475,200.

Following the recent revival of the tax burn proposal, several top exchanges have indicated support. The Crypto Basic recently reported that Singapore-based crypto exchange platform Bitrue announced its support for the tax burn today in an official blog post. The platform expects the tax burn mechanism to go live on September 20.

Following Kraken’s support, the number of exchanges willing to implement the tax burn now sits at nine. These exchanges include Binance, KuCoin, MEXC Global, Lbank, Huobi, Bitrue, Gate.io, CoinInn, and the latest, Kraken.

Out of these, only Kucoin, MEXC Global, and CoinInn will support burns on LUNC trading.

As more exchanges indicate support for the tax burn, holders of LUNC see the light at the end of the tunnel, with the asset slowly getting back on its feet. Despite the drop of 21.41%, LUNC’s current price of $0.00029 at the time of reporting is a massive increase from the $0.00009 value it consolidated last month.

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