The Terra Luna Classic (LUNC) community is currently discussing a proposal to raise the burn tax from 0.5% to 1.5%. This change aims to increase the burn rates for LUNC and USTC, accumulate more funds in the community pool, and contribute positively to the overall economy of the network. However, there are noticeable divisions among community members regarding this proposal.
Community Split on Burn Tax Increase
The community is divided on the issue of increasing the on-chain tax rate. One faction aligns with Binance CEO Changpeng Zhao’s (CZ) support for lower tax rates, while others argue that an increase is essential for the sustainability of on-chain activities. This latter group believes that raising the on-chain tax rate to 1.5% would be beneficial in the long run.
Voting is taking place under proposal number 12149 via the Station wallet. According to the proposal, the tax rate would be raised to 1.5% and fixed until the total supply reaches 10 billion LUNC. This modification has received both support and criticism from users and developers operating within the Terra Luna Classic network.
Voting Results and Market Reaction
Current voting results show 43.24% “Yes,” 16.01% “No,” and 40.74% “Veto No.” This clearly indicates a lack of consensus within the community. One validator responded, “Do not sabotage developers and L2 projects. This proposal has been on the agenda for the 30th time.”
Raising the burn tax is expected to increase the burn rates for LUNC and USTC. Additionally, more funds could accumulate in the community pool and Oracle pool. This situation may positively impact LUNC’s price performance in the long run. However, uncertainties regarding this proposal continue in the market.
Due to general market sell-offs, LUNC has lost 9% of its value in the last 24 hours, currently trading at $0.0001135. Similarly, USTC has dropped by 7% to $0.02029. The trading volume for both tokens has increased, indicating ongoing investor interest.
This voting represents a significant milestone in determining the future strategy of the Terra Luna Classic community. The decision made by the community will directly impact not only the on-chain economy but also the market performance of LUNC and USTC.
