Terra Luna Classic (LUNC) Burn Tax Change Proposal Officially Passed

Terra Luna Classic (LUNC) Burn Tax Change Proposal Officially Passed. On June 15, 2024, the Terra Luna Classic community passed a significant proposal to revise the burn tax distribution for LUNC. This change, approved by over 98% of the community, will have various impacts on the Terra Classic ecosystem. The new distribution method is expected to be implemented in mid-July.

Key Proposal Details

The proposal, numbered 12114, was introduced by the well-known developer Till Z., also known as Fragwuerdig. It focuses on modifying the burn tax distribution related to the oracle pool split, as outlined in the previously passed proposal 12098. The community showed overwhelming support, with 98.04% of the votes in favor.

Community and Validator Support

The proposal received strong backing from both community members and validators. Among the 47 validators who participated in the governance voting, prominent ones like Allnodes, Interstellar Lounge, JESUSisLORD, Stakely, and HappyCattyCrypto supported the change. This high level of support underscores the community’s consensus on the need for this adjustment.

Current Burn Tax and Proposed Changes

Currently, Terra Classic has a burn tax set at 0.5%. Of this, 80% is used for burning, while the remaining 20% is split equally between the Community Pool and rewards (10% each). The new proposal changes this distribution so that 20% will be split equally between the Community Pool and the Oracle Pool.

Impact on LUNC Users and Staking

This change will affect immediate block rewards for LUNC users. Instead of being allocated to rewards, a portion of the burn tax will now go into long-term staking rewards via the Oracle Pool. This aims to enhance LUNC staking and benefit validators, though it may decrease the annual percentage rate (APR) by about 0.5%, depending on on-chain volumes.

LUNC and USTC Price Trends

Recently, both LUNC and USTC prices have hit two-month lows. If the LUNC support level at $0.000090 is broken again, the market could see a bearish trend. Over the last 24 hours, the LUNC price dropped by over 4%, currently trading at $0.0009051. The 24-hour low and high were $0.00008112 and $0.00009757, respectively. Additionally, trading volume decreased by 7% in the same period, although the Binance LUNC burn mechanism remains in good terms.

Similarly, the USTC price dropped by 5%, now trading at $0.0184. The 24-hour trading volume saw a slight decline of 2% as traders took advantage of the price dip.

Conclusion

The Terra Luna Classic community’s decision to revise the burn tax distribution marks a pivotal moment for LUNC. While the proposal aims to improve long-term staking and benefit validators, it may also impact immediate rewards and APR. The market’s reaction to this change will be closely watched as the implementation date approaches.

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