In a blog post published by cryptocurrency exchange MEXC Global 3 days ago, the firm revealed that it would support the LUNC community burn tax proposal in a time-limited event from 10:00 a.m. to 5:00 p.m. m. from September 3 until 10:00 a.m. on September 17 (UTC).
“To support the Terra Classic Community Burn Tax (LUNC) proposal, MEXC will launch a limited-time burn event for LUNC/USDT and LUNC/USDC commercial spot rates,” the company wrote.
In accordance with the LUNC tax proposal, which recommends that all on-chain transactions be taxed at 1.2% and burned, MEXC says that the spot trading fee for LUNC trading pairs will be adjusted to the 1.2%. MEXC indicates that it will use the trading fee obtained to carry out daily repurchases in the secondary market. LUNC tokens obtained from buybacks would be sent to the recording address provided by Terra.
While the event has a time limit of about two weeks, the exchange notes that it could be extended based on feedback from exchange users.
Notably, MEXC joins UK-based crypto exchange Y5 Crypto, which announced its support for the tax proposal last Tuesday to support the LUNC community.
It is worth mentioning that the Terra community has already approved the tax proposal. As such, MEXC began burning LUNC tokens on Sunday. So far, the exchange has burned more than 25.4 million LUNCs in the last two days.
While Terra believes it will better compensate investors in the LUNC community with its Terra 2.0 project, which it launched in opposition to pleas to burn off excess LUNC supply, members of the LUNC community have taken it upon themselves to try to revive their favorite project. In particular, the various community burning initiatives are geared towards that.
Consequently, the LUNC token has posted impressive gains in recent weeks and added over $1 billion to its market capitalization. However, analyst Michaël van de Poppe has warned investors to lose hope that the token will rise back to the $1 mark. LUNC is currently trading at $0.0002591, up 3.47% in the last 24 hours.