Terra Luna Classic Votes On Implementing New LUNC Burn Tax, Price To Fall Further

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As an experienced analyst, I believe that the proposed changes to the burn tax distribution in Terra Luna Classic could have significant implications for the ecosystem. While the community has overwhelmingly approved of this proposal with 99.97% votes in favor, it’s essential to understand the implications of these changes.

LUNC Update: The Terra Luna Classic community is currently holding votes on a significant proposal to modify the distribution of the LUNC burn tax. Proposal 12098, which was previously endorsed by the Terra Classic community in April, suggests a “pay-per-job” (PPJ) model for implementing these changes with the consensus of community members and validators.

Terra Luna Classic Prepares for Burn Tax Changes

Text proposal 12114 by popular developer Frag seeks PPJ approval to implement the burn tax distribution change passed by the Terra Luna Classic community. The developer seeks to start working on revising burn tax to implement the oracle pool split, as per conditions set in proposal 12098.

As a dedicated crypto investor in Terra Classic, I can confirm that our community strictly abides by a 0.5% burn tax. From this amount, an impressive 80% is devoted to burning tokens, while the remaining 20% is distributed in various ways. Specifically, 10% goes towards the Community Pool and another 10% is allocated for rewards. However, as per proposal 12098, the distribution of this 20% has been adjusted, with 10% now directed to the Community Pool and the other 10% earmarked for the Oracle pool.

The developer has set following requirements under the implementation plan:

  • Implementation of the new distribution logic in ante handler
  • Adjust the split parameters to reflect the new split logic
  • Adjust the proposal types and handlers to reflect the new parametrization
  • Writing ante handler unit tests to test if the new logic reflects the requirements of proposal 12098
  • Non-empty upgrade proposal handler to be able to rollout the changes with coordinated chain halt proposal and set the split/distribution parameters according to proposal 12098

As a crypto investor, I’d interpret Frag’s proposal as follows: I, Frag, plan to finish the project within 56 hours and request $3600 in LUNC for my efforts. This task includes developing the code, conducting local testing, writing unit tests, rolling out on the testnet, and coordinating the mainnet rollout. I’m optimistic about meeting the deadline by mid-July, but keep in mind that there are several variables at play, so the odds may not be 100% certain.

Impact of Changes to Burn Tax

As a crypto investor, I would explain it this way: Following the proposal, 20% of the rewards will no longer be distributed immediately as block rewards to users. Instead, 10% will go to the Community Pool and another 10% to the Oracle pool. This change may temporarily reduce my own rewards. However, I see the benefits in the long run. The portion from the burn tax will now contribute to staking rewards in the Oracle pool, enhancing LUNC staking and supporting validators. Although this improvement might decrease the Annual Percentage Rate (APR) for me by approximately 0.5%, depending on on-chain volumes, I believe it’s a worthwhile trade-off for the overall growth of the network.

Nearly all validators, including Interstellar Lounge, JESUSisLORD, and StakeBin, have cast their votes in approval of the proposal, amounting to a staggering 99.97% in favor. However, some prominent validators such as those mentioned above are not the only ones involved in this decision-making process. Other top validators still need to weigh in on the PPJ proposal.

I’ve analyzed the recent price action of LUNC, and I noticed a 5% decrease in its value over the past 24 hours. This decline was observed during a broader market selloff, with LUNC now trading at $0.0001024. Interestingly enough, there has been an uptick in trading volume for LUNC and 1000LUNC futures contracts in the last few hours. This could potentially indicate that some investors are taking advantage of this price drop to enter new positions or increase their existing ones, anticipating a potential market reversal.

As an analyst, I’ve observed that USTC experienced a significant decrease in price, with it dropping by more than 4% to reach a new trading price of $0.02059. Over the past week, this cryptocurrency saw a substantial decline of around 12%. The lowest and highest prices recorded within the last 24 hours were $0.02034 and $0.02183 respectively.

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2024-06-11 18:28