Upbit Discloses Terra Transaction Fees Utilization Plan

$104M Worth Assets of Terra Co-Founder Confiscated by South Korea
  • Upbit’s Luna Fee Utilization Committee has agreed to split transaction fees.
  • A white paper explaining what led to the LUNA problem is part of the near-term agenda.

Upbit, the leading cryptocurrency exchange in South Korea, has a plan to split the about $4.6 million in Terra LUNA transaction fees it collected during the Terra-LUNA issue between immediate and long-term goals. It wants to build up a virtual asset monitoring center, write a white paper on the Terra-LUNA situation, and provide money to groups that are helping to compensate Terra investors for their losses.

Upbit has announced that it would use the transaction fees collected during the Terra-LUNA crisis (May 11-20) for other purposes.

Near-term and Long-term

It was announced on September 27 that Upbit’s Luna Fee Utilization Committee has agreed to split transaction fees into short-term and medium-long-term programmes during a meeting. The current market value of the entire transaction fee of 239.13025970 BTC is around $4.6 million. Transition fees were over $7.5 million in May, but with Bitcoin’s recent drop below $20,000, that figure has decreased significantly.

Long-term, the group has settled on setting up a central location for monitoring digital assets. It will strengthen security for customers and investors.

Additionally, the committee intends to provide some of the transaction fees to groups helping Terra investors recover from the recent earthquake. A white paper explaining what led to the Terra-LUNA problem is also part of the near-term agenda.

Upbit and other exchanges had originally intended to reimburse customers for Terra Classic (LUNC) transaction costs. On the other hand, the Luna Fee Utilization Committee discussed the possibility of refunding transaction costs to investors on September 7.

Meanwhile, other South Korean exchanges like Korbit, which had promised to reimburse investors’ transaction costs, have made no additional announcements.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.