Terra Luna Classic Votes on Proposal to Revise LUNC Burn Tax to 1.5%

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As a seasoned crypto investor with a penchant for Terra Luna Classic (LUNC), I find myself once again caught in the crossfire of a contentious community vote. The proposed increase in the on-chain tax rate from 0.5% to 1.5% is a double-edged sword, promising increased burn rates and pool funding, but also sparking division within the community.

The Terra Luna Classic community is currently debating on a contentious plan to elevate the burn tax from 0.5% to 1.5%. If approved, this move could substantially accelerate the destruction of LUNC and USTC tokens, thereby increasing the amount of funds in both the Community pool and Oracle pool. This situation might also spark an upward trend in the price of LUNC.

There’s ongoing disagreement within the community regarding the hike in on-chain tax rate. While Binance co-founder Changpeng “CZ” Zhao advocates for maintaining a low burn tax, others suggest that the Terra Luna Classic chain should adjust it immediately.

LUNC News: Terra Luna Classic Community Burn Tax Proposal

As a crypto investor, I’m keeping an eye on the ongoing vote within the Terra Luna Classic community regarding proposal 12149. This proposal suggests setting the on-chain tax rate to 1.5%, which is a significant increase from the current 0.5%. However, this new rate will only apply if the total supply of LUNC doesn’t exceed 10 billion. The aim is to maintain this higher tax rate unless the total supply reaches this threshold, at which point it would remain unchanged. This move could impact the market dynamics and potential returns for Luna Classic investors like myself.

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.

Currently, the proposition has garnered approximately 43.24% affirmative votes, contrastingly, it has received about 16.01% negative votes. Interestingly, a significant 40.74% have cast “No with veto” votes, suggesting that the community is once again finding it challenging to reach a consensus on this matter.

The validator remarked, “Avoid undermining builders and L2 initiatives. I’m voting ‘no’ as the thirty-first attempt might be excessive.

LUNC and USTC Price Action

Increasing the burn tax to 1.5% would boost the pace at which tokens like LUNC and USTC are destroyed through taxes, enhance the rate of community pool funding, and provide more resources for the oracle pool, all contributing to 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.

Simultaneously, the price of USTC fell by 7%, currently at $0.02029. Over the past 24 hours, its lowest and highest prices were recorded as $0.01887 and $0.02178 respectively. The trading volume experienced a significant increase of 87% compared to the previous day.

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2024-12-19 15:29