Terra Luna Classic Set To Implement Tax2Gas and End LUNC Burn Tax?

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As an experienced analyst, I’ve closely followed the developments in the Terra Luna Classic ecosystem, and the recent proposal to implement Tax2Gas is a welcome move in my opinion. The current burn tax has presented several challenges for contract developers and clients alike, requiring manual calculations and adjustments that add complexity and potential errors.

The development team at Genuis Labs, responsible for Terra Luna Classic, proposes implementing Tax2Gas directly into the blockchain system. This would eliminate the need for independent tax handling and calculation procedures. This decision follows the proposal made earlier by well-known developer StrathCole, who suggested a similar approach for the Terra Classic chain and received support from Genuis Labs.

With Tax2Gas, the tax will be integrated into the gas price and eliminate the need for separate processing and calculation. The objective was to raise the on-chain tax percentage to 1.5%, returning it to the initial burn tax of 1.2%, while allocating 0.3% towards funding the blockchain based on the current tax distribution (80% to gas fees, 20% to network development).

Terra Luna Classic Community Move Ending Current Burn Tax

The Terra Luna Classic community introduced a tax on transactions that resulted in burning tokens in the year 2022. Nevertheless, some concerns have arisen regarding this burn tax mechanism.

  • Contract developers need to calculate the tax manually and adjust the amount for it.
  • Clients, or dApps, have to calculate the tax themselves, as the simulation endpoint only provides gas estimates.
  • Migrating audited dApps becomes cumbersome due to these Classic-specific adjustments, leading to potential re-audits.

Genuine Labs noted that Tax2gas offers a genuine solution to address the existing challenges associated with burn taxes. This approach is both uncomplicated and effective. Furthermore, it shields Terra Luna Classic from potential attacks by implementing end-to-end testing (denoted as e2e-test).

I estimate that the development process, which includes research, creation, and elementary testing and deployment, will take the team five weeks to finish. The projected cost for this project in LUNC is $25,000. During the initial phase of implementation, the developers plan to submit their spending proposals. After successfully completing the outlined tests, they will do so.

Currently, Terra Classic imposes a tax of 0.5% on transactions. Of this amount, 80% goes towards burning tokens, while the remaining 20% is allocated: 10% to the Community Pool and 10% to the Oracle Pool.

LUNC and USTC Price Performance

As an analyst, I’ve observed a notable rise of 2% in LUNC’s price over the past 24 hours, reaching a current value of $0.0001187. The price fluctuation saw a low of $0.0001166 and a high of $0.0001208 during this period. Additionally, there has been a slight uptick in trading volume, signaling heightened investor attention.

As an analyst, I’ve observed that USTC experienced significant growth over the past day and week. Specifically, the price surged by over 3%, reaching $0.02378. In just one week, this cryptocurrency displayed a remarkable increase of approximately 22%. Moreover, there was a substantial jump in trading volume during the last 24 hours, amounting to a noteworthy 52% rise.

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2024-06-05 16:38