2024-08-11
As of August 2024, the Terra Luna Classic (LUNC) network has a tax burn rate of 0.5% on all transactions. This rate is divided into two parts: 80% is used directly for burning LUNC tokens to reduce the supply, while the remaining 20% is split equally between the community pool and the oracle pool, each receiving 10%.
There had been ongoing discussion within the community about increasing the burn tax rate to 1.5%.
If implemented, this change would increase the allocation for burning from 0.4% to 1.2%, which could significantly accelerate the reduction of the LUNC supply. This proposal will deploy a new mechanism called "Tax2Gas".
On August 9, 2024, Terra Luna Classic proposal #12120,
known as the Tax2Gas implementation, the proposal developed by by Genuine Labs, has been approved by the
community with over 65% of the votes from validators and delegators.
This proposal aims to enhance LUNC
burns by integrating tax handling directly into transaction gas fees.
The strategy boosts LUNC’s tax burn
rate from 0.5% to 1.5%, potentially improving efficiency and reducing manual
calculations.
This change is expected to make transactions smoother for developers and users, potentially attracting more activity to the Terra Luna Classic network.
LUNC 24 hours price increased 7.55% on August 10, 2024.
