Terra Luna Classic Community Passes Major Tax2Gas Proposal, LUNC Price To $1

Terra Luna Classic Community Approves Tax2Gas Proposal: Will LUNC Price Rally to $1?

The Terra Luna Classic community has approved a significant proposal by Genuine Labs to implement Tax2Gas. This move, aimed at simplifying tax handling and calculation, is expected to benefit dApp developers and other users. The decision was made through governance voting, with 74.91% voting in favor and 25.03% abstaining.

What is Tax2Gas?

Tax2Gas is an initiative to incorporate the burn tax directly into the gas fees, eliminating the need for separate tax calculations. This simplifies processes for developers and users, making the ecosystem more efficient. According to StrathCole and Genuine Labs, this change will reduce complexities and streamline operations within the Terra Classic network.

Community Support and Discussions

The approval of Tax2Gas has sparked discussions among community members about increasing the burn tax to 1.2%. If implemented, all crypto exchanges will burn tokens on buys and sells, potentially driving up the LUNC price. The proposal, known as 12115 “Genuine Labs Tax2Gas Implementation,” aims to incorporate the tax into the gas fees and enhance chain security by preventing attack vectors using e2e-test.

The proposal saw significant support from validators such as Interstellar Lounge, JESUSisLORD, Stakely, HappyCattyCrypto, and StakeBin. However, Allnodes, a top validator, abstained from voting and raised concerns about the lack of discussions around the proposal.

Challenges and Budget

The Tax2Gas proposal is seen as a game-changer as it resolves issues like the need for contract developers to calculate the burn tax manually. Currently, clients or dApps must calculate the tax themselves, and migrating audited dApps involves cumbersome adjustments, leading to potential re-audits.

Genuine Labs developers estimate a five-week timeline for research, development, basic testing, and deployment. The total budget for this project is estimated at $25,000 in LUNC.

LUNC and USTC Price Movements

Following the approval of the Tax2Gas proposal, LUNC’s price jumped by 6% in the last 24 hours amid a broader altcoin rally, although it later gave up most gains. As of now, LUNC is trading at $0.00009023, with a 24-hour low of $0.00008855 and a high of $0.00009445. Trading volume decreased by 32% in the last 24 hours, indicating a lack of interest among traders.

Despite the mixed market response, the Terra Classic community remains optimistic that LUNC could hit $1 during this bull market. For this to happen, LUNC needs to break above the $0.00012 level to trigger a massive rally.

Meanwhile, the price of USTC has also increased by more than 2%, currently trading at $0.01857. However, the 24-hour trading volume for USTC dropped by 12%, showing that traders are not sustaining the recovery.

Conclusion

The approval of the Tax2Gas proposal marks a significant step forward for the Terra Luna Classic community. By simplifying tax calculations and enhancing security, this initiative could boost the ecosystem’s efficiency and attract more developers and users. While the immediate impact on LUNC and USTC prices has been mixed, the community’s optimism about future price rallies remains high. Whether LUNC can hit the coveted $1 mark will depend on several factors, including broader market trends and the successful implementation of Tax2Gas.

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