The Terra Classic network recently denied many proposals related to increasing the burn rate and tax of LUNC but, after witnessing the fall of price below $0.000010, the community is now ready to raise the burn tax to 0.5%. This was hinted by some influencers in the Terra Classic community proposing to restore LUNC to the initial 1.2% level in June. The major implication of increasing the burn tax is to reduce the LUNC supply as its demand becomes more prominent through staking. Parameter Change Proposal 11515, which is up for voting, received 77% votes in favor, 20% votes against, and 3% vetoed. Besides, 28 validators voted in favor, 17 of them supporting the proposal, 6 of them opposing it, and 5 of them abstaining.
Binance warned to revoke its LUNC burn mechanism once the proposed amendment is made, as Proposal 10983 to contribute to the community pool from the burn tax was never the reason they agreed to cut 50% of the Spot and Margin Trading Fees Contribution. Fortunately, a new project has countered the effect of Binance's burning with 1.5 billion tokens within two weeks, which is comparatively larger than Binance's 1.2 billion. As of now, LUNC trades at $0.00008917, recording up to a 24-hour low of $0.87 and a 24-hour high of $0.000091.
Andrew Watson
- 2023-05-13
Proposing to Increase LUNC's Burn Tax
After witnessing a fall of LUNC price below $0.000010, the Terra Classic network community is now considering to raise the burn tax rate to 0.5%. Binance warned to revoke its LUNC burn mechanism with their proposed amendment. Fortunately, a new project countered the effect with 1.5 billion tokens.
