Binance Has Announced That It Will Implement A Consolidation Fee Of 1.2% On All LUNC And USTC Transactions

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Last Updated on October 20, 2022 by Bitfinsider

Binance, a well-known global blockchain ecosystem as well as a digital asset exchange, recently made an announcement regarding some alterations to its business practices relating to the Terra Luna Classic coin (LUNC) and the Terra Classic USD (USTC). Binance announced in a blog post that was published on the 27th of September that the company would modify the way it credits and charges withdrawals for users of the Terra Classic network.

Binance claims that any LUNC or USTC that is deposited on its platform will be subject to the withdrawal fees that are imposed by other exchanges or platforms, if and when those fees are applicable. However, prior to crediting deposits to users’ accounts, Binance will now charge a consolidation fee of 1.2% of the total amount of each deposit it receives from customers. Binance claims that the implementation of a 1.2% tax burn on LUNC and USTC transactions on the Terra Classic network is the reason for the introduction of this new fee.

Binance has stated, in reference to the modifications it has made to the process of withdrawals, that its users will receive their withdrawal amount, less the withdrawal fees charged by Binance and an additional 1.2% tax burn. This means that users will be charged twice for every LUNC and USTC transaction made on Binance; the first charge will be for Binance fees, and the second charge will be for tax burn.

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