Terra Luna Classic Votes On Implementing New LUNC Burn Tax, Price To Fall Further

LUNC News: The Terra Luna Classic community has started voting on a key proposal to implement a revised LUNC burn tax distribution. This pay-per-job (PPJ) proposal seeks community members and validators’ approval on moving ahead with changes as per proposal 12098 passed earlier by the Terra Classic community in April.

Terra Luna Classic Prepares for Burn Tax Changes

Text proposal 12114 by popular developer Frag seeks PPJ approval to implement the burn tax distribution change passed by the Terra Luna Classic community. The developer seeks to start working on revising burn tax to implement the oracle pool split, as per conditions set in proposal 12098.

Terra Classic has a burn tax set to 0.5%, which is strongly adhered to by the community. Out of this, 80% is for burn and 20% is distributed as 10% to Community Pool and 10% to rewards. As per 12098, the 20% will be distributed as 10% to Community Pool and 10% to Oracle pool.

The developer has set following requirements under the implementation plan:

• Implementation of the new distribution logic in ante handler
• Adjust the split parameters to reflect the new split logic
• Adjust the proposal types and handlers to reflect the new parametrization
• Writing ante handler unit tests to test if the new logic reflects the requirements of proposal 12098
• Non-empty upgrade proposal handler to be able to rollout the changes with coordinated chain halt proposal and set the split/distribution parameters according to proposal 12098

Frag proposes to complete the work in 56 hours and charge $3600 in LUNC. This implementation needs development, local testing, writing of unit tests; testnet rollout and coordination; and mainnet rollout and coordination. He has set high odds of completing the implementation by mid-July.

Also Read: Terra Luna Classic Community Approves 256 Million LUNC Community Pool Spend

Impact of Changes to Burn Tax

After the proposal, 20% will be distributed as 10% to Community Pool and 10% to Oracle pool. This will make immediate block rewards cut off for users. Instead, the portion from the burn tax would go into long-term staking rewards (Oracle) and improve LUNC staking. It will help validators, but decrease the APR by about ~0.5% depending upon on-chain volumes.

The proposal has received 99.97% votes in favor. All validators including Interstellar Lounge, JESUSisLORD, and StakeBin have voted in favor of the proposal until now. Other top validators are yet to vote on the PPJ proposal.

LUNC price fell 5% in the last 24 hours amid market-wide selloff, with the price currently trading at $0.0001024. However, trading volume has increased in the last few hours, with LUNC and 1000LUNC futures open interests rising.

Meanwhile, USTC price also fell over 4%, with the price changing hands at $0.02059. The price tumbled 12% in a week. The 24-hour low and high are $0.02034 and $0.02183, respectively.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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