Terra Classic (LUNC) Tax Burn To Be Reduced To 0.2%! Here’s Why.

The post Terra Classic (LUNC) Tax Burn To Be Reduced To 0.2%! Here’s Why. appeared first on Coinpedia Fintech News

The Terra Classic (LUNC) community has been adopting several strategies to revive the stability within the network. 

In the latest attempt, they passed Proposal 5234 after a week-long debate and vote. This was confirmed via Tweet by Akujiro, a community member

Proposal 5234 just passed!
This was a community proposal brought forward by community members which passed governance!

@kucoincom voted for the first time
Had an 82% vote rate

We are decentralized, I encourage everyone to start discussions and take action!

— Akujiro (@Akujiro2) October 17, 2022

Alex Forshaw, a LUNC developer, presented the voting details and disclosed that 83% of the members had participated in the decision. 

Amazing community engagement here

-83% participation, even w/ 58/85 validators (25% of total) not voting
-92% of non-abstainers voting Yes

Time to get liquidity back on-chain and start BUIDLing.

The nice thing about crypto politics is how aligned our interests are at EOD! pic.twitter.com/wAgC5wEmQm

— 4lex_4sh4w_TR (@4lex_4sh4w_TR) October 17, 2022

Proposal 5234 is a draft that indicates that the community should reduce the 1.2% tax burn to 0.2%, and 10% of the tax should be dedicated toward the network’s development activities. Through this, the community plans to increase the on-chain volume while burning LUNC. However, it’s worth noting that since the time the 1.2% tax went live, LUNC’s on-chain volume has dropped by 90%. Meanwhile, till today, Binance has burnt more than 6.5 billion LUNC from 1.2% tax.

Initially, the proposal did face resistance from a few supporters as they felt it was too early for such a move. However, in accordance with the community’s wishes, the new 0.2% tax burn is expected to go live on October 19 around 12:50 pm.

Terra’s Revival Plan

After the Terra network collapsed in May, a revival plan was drafted, which said that around 10% of the LUNA supply will be allocated to the network and 80% of the funds will be used for developer mining rewards.

However, a Terra staff member later claimed that there are not many projects with total locked value, and mining revenue cannot be allocated without competition.

Now, there is a new proposal which claims that the mining rewards will be reduced from 80 million to 20 million LUNA. In addition, nearly 5 million LUNA will be given to the users to increase engagement.

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