- Terra Classic chain validator puts a vision plan of $LUNC to $1.
- The plan includes upping the on-chain burn tax to 1.5%.
- Binance CEO CZ previously stated a 1.2% burn tax wouldn’t work.
One ambitious proposal to increase the Terra Luna Classic (LUNC) burn tax to 1.5% is at the center of attention in the struggling Terra community. The final vision plan penned by Christopher Harris, popularly known as JESUSisLORD, concludes with the glorious victory of LUNC back at $1 or more, but there are plenty of obstacles.
For one, prominent Terra Classic community members oppose proposal #11549. For example, some community members pointed out that the burn tax was just upped to 0.5%. The burn tax hike to 0.5% did indeed receive approval from two of the three largest centralized exchanges – Binance and KuCoin.
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However, Binance Boss Changpeng ‘CZ’ Zhao had previously stated that a 1.2% tax burn would not bode well with the largest Terra whales, who have threatened to leave the network if this happens. CZ mentioned that the burning tax should be implemented on the LUNC blockchain before bringing the centralized exchanges up to speed.
Final Vision Plan Unlikely to Pass
Explaining his zealous idea in further detail, JESUSisLORD fired shots at the competing proposal that’s revolving around creating a staking vault for the malfunctioning stablecoin Terra Classic USD (USTC). Currently, $USTC is priced at just one cent on a dollar.
Calling Redline Drifter’s idea a “dangerous experiment,” despite claiming earlier that the USTC repeg proposal #11487 doesn’t contradict or overlap with the final vision plan. Indeed, #11487 which would enact divergence fees in order to set up a USTC staking vault seems more realistic to many Terra community members.
This is evident in most of them voting “Yes,” while proposal #11549 received 76.16% “No with veto” votes, making it unlikely to pass. Knowingly, the validator who authored the proposal is not opposed to trying again later.
On the Flipside
- Both proposals would require assistance from centralized exchanges.
- Binance and Kucoin already approved the recent burn tax hike to 0.5%.
Why This Matters
Terra Classic community aims to revitalize a broken blockchain network that has caused a domino effect on crypto markets last year due to USTC depeg in May 2022.
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