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Terra Luna Classic To Raise LUNC Burn Tax To 1.5%?
Terra Luna Classic community members contemplate raising the burn tax from 0.5% to 1.5% amid the burn tax distribution and Tax2Burn proposal. The community remains divided on the proposal to increase the on-chain tax rate, fearing crypto exchange Binance may suspend the LUNC burn mechanism.
Terra Luna Classic Proposes To Revise On-Chain Tax to 1.5%
Terra Classic validator JesusisLord proposed increasing the on-chain tax rate from 0.5% to 1.5%. The validator also suggests keeping the burn tax unchanged until a total supply target of 10 billion LUNC is reached. This is similar to the community’s initial target set during the burn tax mechanism incorporation.
The 0.5% LUNC burn tax is currently split into 80% and 20%, with the 20% breakdown as — 10% to the community pool and 10% to the oracle pool. With the v3.1.3 upgrade for tax burn distribution successfully implemented, oracle pool will get 10% of the burn tax.
If the tax is increased to 1.5%, it will increase the burn tax to 1.2% from the current 0.4%. Also, it will increase the contribution to the community pool and the oracle pool, making all components boost by three times.
“We can expect a substantial increase in the rate of LUNC and USTC burns from the tax, the community pool funding rate, and funding to the oracle pool for long-term staking rewards,” said the Terra Luna Classic validator.
Notably, this proposal will not proceed for governance voting unless Tax2Gas is successfully implemented on-chain. Core developer Genuine Labs expects the Tax2Gas to go live in August.
Also Read: Terra Luna Classic v3.1.3 Upgrade Goes Live, LUNC Awaits Breakout
LUNC Burn Boost
Raising the burn tax to 1.5% will increase the rate of LUNC and USTC burns from the tax, the community pool funding rate, and funding to the oracle pool for long-term Terra Luna Classic staking rewards.
LUNC price fell 3% in the last 24 hours amid market-wide selloff, with the price currently trading at $0.00008094. The 24-hour low and high are $0.0000807 and $0.0000843, respectively. However, trading volume has decreased by 38% in the last 24 hours.
Meanwhile, USTC price also dropped 4%, with the price now trading at $0.01889. The 24-hour low and high are $0.01878 and $0.01985, respectively. The trading volume saw a 32% drop over the last day.
Also Read: US SEC Amends Binance Lawsuit, No Longer Consider Solana As Security
Varinder Singh
Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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