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Terra Luna Classic Votes on Proposal to Revise LUNC Burn Tax to 1.5%
The Terra Luna Classic community is voting on the controversial proposal to increase the burn tax from 0.5% to 1.5% again. This can significantly boost LUNC and USTC burn rates, increase funds in the Community pool and Oracle pool, and trigger a rally in LUNC price.
The community remains divided on increasing the on-chain tax rate as some agree with Binance co-founder Changpeng “CZ” Zhao to keep the burn tax low. On the other hand, some believe the Terra Luna Classic chain revise it now.
LUNC News: Terra Luna Classic Community Burn Tax Proposal
The Terra Luna Classic community is voting on proposal 12149 “Set On-Chain Tax Rate to 1.5%” on the Station wallet. It aims to increase the on-chain tax rate from 0.5% to 1.5% and leave it unchanged unless the total supply reaches 10 billion LUNC.
The move comes after the successful implementation of the v.3.3.0 LUNC network upgrade. The upgrade simplified tax handling and reduced the burden for developers and dapps to build on the Terra Luna Classic network.
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. 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.
At present, the proposal has received 43.24% “Yes” votes, with 16.01% “No” and 40.74% “No with veto” votes. The voting by validators and delegators indicate the community remains divided again.
A validator commented, “Please do not sabotage builders & L2 projects. Veto because the 30th attempt is one too much.”
LUNC and USTC Price Action
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 9% in the last 24 hours amid market-wide selloff, with the price currently trading at $0.0001135. The 24-hour low and high are $0.0001115 and $0.0001243, respectively. However, trading volume has increased by 38% in the last 24 hours.
Meanwhile, USTC price also dropped 7%, with the price now trading at $0.02029. The 24-hour low and high are $0.01887 and $0.02178, respectively. The trading volume saw an 87% rise over the last day.
Varinder Singh
Varinder has over 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 leading the news team to cover latest updates and developments in the crypto industry.
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