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Gate.io Updates Regarding 1.2% Tax on LUNC and USTC Deposits & Withdrawals

2022-09-20 07:19:53 UTC 60377
According to the Terra Classic’s Proposal, the 1.2% tax on LUNC and USTC on-chain transactions is expected to go live on the Terra Classic height 9,475,200 (around September 21, 2022 at 06:00 UTC). Gate.io will implement the proposed 1.2% tax on LUNC and USTC deposits and withdrawals when the on-chain parameter changes go live. Below are more details:

1) Gate.io will implement an extra 1.2% tax on LUNC and USTC deposits as the sweep fee. LUNC and USTC deposits will be credited after deducting the 1.2% sweep fee as well as the 1.2% tax charged by the Terra Classic protocol before they reach Gate.io user deposit address.

Why do we charge the sweep fee?
When users are depositing LUNC and USTC tokens, they are sending their tokens to their own deposit addresses on Gate.io. But this is not the entire deposit procedure for the tokens. Those tokens in users’ deposit addresses will then be swept into Gate.io hot wallet. This sweep transaction is an on-chain transaction as well and will be charged another 1.2% tax by the Terra Classic protocol.

2) Gate.io will implement a 1.2% tax on LUNC and USTC withdrawal besides the network gas fee. The 1.2% tax will cover the 1.2% tax charged by the protocol. So that your LUNC and USTC withdrawal will arrive at the destination address with the net amount after deducting the 1.2% tax and the network gas fee.

3)The trading of LUNC and USTC (Spot, margin or futures trading)are not on-chain activities and will not be charged the tax.

The deposit tax will take effect when the on-chain tax goes live. If you don’t want to pay the extra deposit fee, it is recommended that you deposit LUNC and USTC before September 21, 2022.

Deposit USTC:
Deposit LUNC:
Learn more about the proposal:

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Gate.io Team
September 20, 2022

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