Debate Heats Up Over Terra Luna Classic Burn Tax Increase

The Terra Luna Classic community is considering a substantial increase in the burn tax, potentially raising it from 0.5% to 1.5%.

This proposal has sparked debate, with some fearing that major exchanges like Binance might suspend the burn mechanism if the tax rate is raised.

Validator JesusisLord has put forward the idea of tripling the burn tax rate. He also suggests that the current rate should remain until the total LUNC supply reaches 10 billion, aligning with the original burn targets.

The proposed increase would triple contributions to both the community and oracle pools, enhancing long-term staking rewards.

READ MORE:

Cardano Founder Makes a Bold Accusation Against Ethereum

However, the proposal hinges on the successful implementation of the Tax2Gas feature, expected to launch in August. Without this, the proposal won’t proceed to a governance vote.

Recent market data shows a 3% decline in LUNC’s price and a 4% drop in USTC, with trading volumes also decreasing significantly.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.