eToro applies tax on trading activities in a unique way.
Popular trading platform eToro announced in a post published yesterday on the LUNC trading page that it will introduce a 1.2% tax break on trading activities.
Based in Israel, eToro is known as a global multi-asset investment exchange that provides trading options for stocks, forex, cryptocurrencies, etc.
Notably, after changing the tax parameter, buyers and sellers will pay a fee of 0.6% on top of the standard 1% fee on the trading platform. Both parties thus share the 1.2% tax equally. It should be mentioned that eToro's implementation of burning off-chain transactions is a welcome development for the community, as several other exchanges have limited the implementation to only on-chain transactions (deposits and withdrawals).
Notably, trading activities on exchanges require more volume than on-chain activities. As a result of exchanges implementing a tax on off-chain activities, it greatly improves the efficiency of the burning initiative to reduce the supply of LUNC.
“The taxation and burning mechanism affects the operating costs associated with our LUNC offering. Starting September 20, eToro's bid and ask prices for LUNC will be subject to a transaction fee of 0.6% in addition to the standard 1% fee charged when buying or selling cryptoassets on eToro," the firm writes. in your post.
Unsurprisingly, the response to the development has been positive, as a member of Terra Rebels, the group dedicated to the development of the Terra Classic network, reXx shared the news on Twitter. Several users welcomed the development as good news and hoped that other platforms like Binance would follow suit. In addition, users are starting to look for platforms that introduce a 1.2% tax break for off-chain activities. As a result, we are likely to see an influx of LUNC investors and traders to these platforms.
Leading crypto exchange Crypto.com also pledged support for tax burning yesterday. However, unlike eToro, it limits it to deposits and withdrawals only.
The tax parameter change is expected to go live in moments after weeks of anticipation. The proposal plans to reduce the supply of LUNC to 10 billion tokens in an effort to improve the value of the asset after the Terra ecosystem collapsed to zero in May.
It is currently trading at $0.0003023.
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