Terra Luna Classic Will Raise LUNC Burn Tax To 1.5%, Here's Why!

Terra Luna Classic will raise LUNC's burning tax to 1.5% (Photo; Doc. Criptokio)

JAKARTA - The Terra Luna Classic Community is now considering a proposal to increase the burning tax (burn tax) from 0.5% to 1.5%. This proposal comes amid the distribution of burning tax and the tax 2Burn proposal. However, the community is still divided over the plan, with concerns that the Binance crypto exchange may suspend the LUNC combustion mechanism.

Quoted from Coingape, Terra Classic validator Jesusis totaled an increase in the on-chain burning tax from 0.5% to 1.5%. This validator also suggested that the burning tax remain unchanged until LUNC's total supply reaches the target of 10 billion, according to the community's initial target when the burning tax mechanism was implemented.

Currently, the LUNC burning tax of 0.5% is divided into 80% for community pools and 20% for pool oracles. With an upgrade of v3.1.3 for the successfully implemented burning tax distribution, the pool oracle will get 10% of the burning tax.

If this tax is raised to 1.5%, then part of the burning tax that goes into the community pool and pool oracle will triple, to 1.2% of the current burning tax of 0.4%.

"We can expect substantial improvements in the LUNC and USTC combustion rates from these taxes, as well as an increase in funds for community pools and pool oracles for long-term staking rewards," said Terra Luna Classic validator.

However, this proposal will not continue for governance voting unless the Tax2Gas is successfully implemented on-chain. Core developer Genuine Labs hopes the Tax2Gas can be launched in August.

The increase in the burning tax to 1.5% is expected to increase the rate of LUNC and USTC burning from this tax, as well as boost funds for community pools and pool oracles, which is important for long-term Terra Luna Classic staking prizes.

The price of LUNC fell 3% in the last 24 hours amid widespread market sales, with prices currently trading at IDR 0.0000094. The lowest and highest 24-hour pricings were IDR 0.000007 and IDR 0.0000843, respectively. Trading volume also decreased by 38% in the last 24 hours.

Meanwhile, USTC prices also fell 4%, with prices currently trading at IDR 0.01889. The lowest and highest 24-hour price ranges were IDR 0.01878 and IDR 0.01985. Trading volume decreased by 32% in the past day.