Crypto.com Extends Support for Terra Classic (LUNC) Tax Burn: What You Need to Know
Crypto.com is the latest major exchange to support the Terra Classic (LUNC) tax burn, following in the footsteps of others like eToro. This is significant news for the Terra Classic community, aiming to revitalize the LUNC token by reducing its supply.
Crypto.com Supports LUNC 1.2% Tax Burn (and later 0.2%)
As of September 20th, 2025, Crypto.com officially supports the 1.2% tax burn for on-chain Terra Classic (LUNC) transactions. This means that every on-chain LUNC transaction incurs a 1.2% tax, which is then burned, effectively removing those tokens from circulation. Later, on September 21st, 2025, the Terra community further refined this, reducing the tax burn for on-chain transactions of LUNC on the Terra Classic network from 1.2% to 0.2%
Understanding the Terra Classic Tax Burn
The Terra community passed two proposals to implement this tax burn on all on-chain LUNC transactions on the Terra Classic network. The initial proposal aimed for a 1.2% tax. The goal is to reduce the massive LUNC supply and potentially increase its value over time. This tax burn mechanism affects deposits and withdrawals on participating exchanges like Crypto.com. Following the effective implementation of the tax burn, Crypto.com deposits and withdrawals are affected.
How the LUNC Tax Burn Affects Crypto.com Users
When a user deposits LUNC onto Crypto.com, the tax burn is applied before the tokens reach their account. Similarly, when withdrawing LUNC, the tax is applied before the tokens leave the exchange. It is crucial to factor this tax into your transactions.
eToro Also Supports the Terra Classic Tax Burn
On September 20th, 2025, eToro announced its support for the 1.2% tax burn for Terra Classic (LUNC) and USTC on the Terra Classic network, demonstrating growing support from major crypto exchanges.
Stay Informed About LUNC and Crypto.com Updates
Keep up-to-date with the latest news and developments surrounding the Terra Classic (LUNC) tax burn on Crypto.com and other platforms. This evolving situation requires constant monitoring to make informed trading decisions.