Below are updates that are planned and completed for Terra and Terra 2.0
Following proposal Proposal 5234 which intends to reduce the tax burn for on-chain transactions on the Terra Classic network from 1.2% to 0.2% of Terra Classic (LUNA) and TerraUSD Classic (UST).
- Deposits: Transactions will be taxed by the Terra Classic network before they reach Kraken. When depositing LUNA or UST on Kraken, the deposit transaction must include the 0.2% tax in its transaction fee, as well as a sweep fee that will be deducted off the deposited amount by Kraken (0.2%).
- Why the sweep fee? When deposits arrive in Kraken’s wallet, those funds need to be swept into our hot wallet. This transaction happens on-chain and is subject to the tax burn.
- Withdrawals: When moving LUNA or UST off Kraken, transactions will be taxed by the Terra Classic network before they reach your external address. The balance will be credited to your external wallet, minus the 0.2% tax deduction by the network.
Changes are expected to go live on October 27, 2022. Spot, margin, and futures trading will not be affected by this tax burn.
More information about the parameter change regarding the tax and burn: Proposal 5234
Kraken will endeavor to support the wider update and the new Terra 2.0 token airdrop outlined in the Terra Ecosystem Revival Plan 2.
- This new blockchain will be called Terra 2.0 with the asset name LUNA2.
- The old blockchain will be renamed to Terra Classic with the asset name remaining as LUNA. UST will remain UST.
- Clients who have LUNA and UST balances on Kraken during the identified snapshot times will receive the new LUNA2 airdrop. We will be monitoring the Terra Classic chain during the snapshot. Funding may be delayed or halted depending on network conditions as Terra 2.0 starts.
- Existing LUNA deposit addresses will continue to work for LUNA and LUNA2 once funding is live.
- Terra 2.0 (LUNA2) trading and funding are now live.
These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, or hold any digital asset or to engage in any specific trading strategy. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your crypto assets and you should seek independent advice on your taxation position.
Article last updated 24 November 2022 14:30 UTC