Upbit Plans to Use Luna Classic (LUNC) Transaction Fees

Written by C, Fiona

Last updated: 2022-09-27

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Upbit, South Korea’s top cryptocurrency exchange, plans to split the approximately $4.6 million worth of Luna Classic (LUNC) transaction fees collected during the Terra-LUNA crisis into short-term and medium- to long-term plans. These plans include establishing a virtual asset monitoring center, writing a white paper on the Terra-LUNA crisis, and making donations to organizations working to mitigate losses to Terra investors.

Upbit to Repurpose Luna Classic Transaction Fees

Crypto exchange Upbit will repurpose the transaction fees charged during the Terra-LUNA crisis for the period May 11-20 as part of moral responsibility to compensate for investors’ loss.

Upbit’s Luna Fee Utilization Committee in a meeting has decided to allocate transaction fees into short-term and mid-to-long-term plans, local media reported on September 27. The total transaction fee of 239.13025970 BTC is now worth about $4.6 million. In May, the transition fees accounted for about $7.5 million, but Bitcoin’s fall below $20,000 has impacted the amount.

The committee decides to establish a virtual asset monitoring center as a long-term plan. It will help ensure fair market practices and investor protection.

Moreover, the committee plans to donate part of the transaction fees to organizations working on damage relief for Terra investors. The short-term plan also includes writing a white paper on the cause of the Terra-LUNA crisis.

Earlier, Upbit and other exchanges planned to refund transaction fees on Terra Classic (LUNC) to users. However, the Luna Fee Utilization Committee in a meeting on September 7 said returning transaction fees to investors is not feasible.

Meanwhile, South Korea’s other exchanges such as Korbit haven’t announced further plans after promising to refund transaction fees to investors.

LUNC May Face Significant Price Move

Terra Classic community’s request to implement tax burn was partially accepted by crypto exchange Binance on September 26. Binance will burn transaction fees on Terra Classic (LUNC) for all spot and margin trading. As a result, the LUNC price jumped over 70% from $0.00018 to $$0.00032.

LUNC prices are currently trading at $0.00029, down slightly after profit-taking. However, daily trading volume has jumped again to over $2 billion. In addition, the LUNC price is under pressure as Interpol adds Terra founder Do Kwon to its red list.