In a recently published tweet, major crypto trading platform Bitfinex spread the word that it had resumed accepting deposits and making withdrawals of Terra Luna Classic (LUNA) and stablecoin TerraUSD.
Bitfinex supports the @terra_money #Terra Classic Network Tax Burn.
✅ $LUNA will be credited to Bitfinex after a 0.2% tax deduction
✅ $LUNA withdrawals will be credited to your external wallet after a 0.2% tax deduction
✅ No tax burn for tradinghttps://t.co/myiz0BdiId pic.twitter.com/eE2yffgAGc
— Bitfinex (@bitfinex) October 26, 2022
This was done after the platform began supporting LUNA network tax burn mechanism. After the necessary proposals were approved, the community of Terra implemented a 1.2 tax burn, which will be utilized on all transactions on the Terra Classic network.
After that, the tax burn was cut down to only 0.2% from 1.2%. This will allow setting aside 10% of the collected tax revenue to provide financial support for Terra ecosystem contributors and its infrastructure.
This mechanism of Terra Classic tax burn will enable the community to cut down the fixed supply of Luna Classic — 10 billion coins, thus making the coin more scarce and giving it higher potential to rise in the future.