The Binance exchange said it will not charge a tax on Terra Classic trading on the spot market

At the same time, Terra Luna Classic intends to charge a 1.2 percent fee on each transaction on its blockchain. At the time, Binance declined to do so on spot and margin trading.

Proposals 3568 and 4159 were passed to manage Luna Classic, which added a 1.2 percent tax on all trades on the blockchain at a block height of 9,475,200. 

However, exchange trades are managed through an internal order book and are not conducted on the chain. Only deposits and withdrawals are recorded online to ensure that trades are settled quickly. DEX allows users to trade on the chain and, therefore, will apply a 1.2% tax. Still, other exchanges are likely to follow Binance's lead.

"Deposits: Transactions will be taxed on the Terra Classic network before they reach Binance. Balances will be credited to your Binance account after a 1.2% network tax deduction. 

Withdrawals: Users will receive a withdrawal amount minus the withdrawal fee charged by Binance and the network's 1.2% tax deduction." According to Binance's press release.

KuCoin, for its part, said it would support the LUNC chain's token-burning initiative. Still, it never spoke at the end about whether that would apply to transactions and margin trading. It was more like an attempt to sit on two chairs and then decide after seeing the community's reaction.

You can also download Moni to keep an eye on LUNC and other coins. Download here.