- The LUNC community hires an experienced dev to implement the new burn tax.
- In April, LUNC members unanimously voted to distribute 10% to Oracle Pool.
- Terra Luna Classic slumps 15% in two weeks at a market cap below $600M.
Terra Luna Classic’s (LUNC) community is moving to implement a previously accepted alteration to LUNC burn tax distribution.
Why Is the LUNC Burn Tax Switch Critical for the Community?
The perks of activating a new burn tax were lined out by several prominent LUNC chain validators, including JESUSisLORD. The veteran validator explained that a smooth implementation of proposal #12098 is likely to cause a slight drop in the APR of staking rewards but also create a long-term staking vault in the Oracle Pool.
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While this scratches the immediate block rewards for validators, the original proposal submitted in April 2024 tackles a critical issue on the Layer-1 chain by reallocating the immediate rewards to the Oracle staking pool. The follow-up governance proposal #12114 is focused on practically implementing the revised burn tax, which Frag, a veteran community developer, will do.
The LUNC burn tax will need local testing, the writing of unit tests, and a coordinated test net rollout.
The completed testing on the testnet will be followed by coordination and mainnet deployment. According to the text proposal by developer Frag, they are expected to complete the transformation to the new LUNC burn tax system by mid-July 2024. As of press time, LUNC trades at $0.000102, with a 3% downswing over the past 24 hours.
On the Flipside
- While the LUNC burn tax proposal offers a clear direction, validators are waiting for Genuine Labs to put up a tax-to-gas proposal, which would eventually raise the LUNC burn tax from 0.5% to 1.5%.
- However, a large chunk of the Terra Luna Classic community argues that a tripled LUNC burn tax could scare away whales, whilst it would be difficult to coordinate the 1.5% LUNC burn tax with major exchanges.
Why This Matters
The community is looking for an effective solution to restore Terra Luna’s former glory. The Layer-1 chain was among the top blockchains before the unfortunate UST de-pegging in 2021.
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