Increasing Burn Tax: Could It Revitalize Terra Luna Classic’s Value?

Terra Luna Classic (LUNC) users are closely monitoring a proposal to increase the on-chain burn tax rate, which could impact the token’s value. The ongoing debate has yet to influence LUNC’s trajectory significantly, likely because the proposed tax increase would only take effect once the LUNC supply reaches 10 billion tokens.

Proposal Details And Community Reaction

Validator JesusisLord submitted the proposal to raise the burn tax rate from 0.5% to 1.5%. The community anticipates that this proposal could significantly alter the LUNC ecosystem’s dynamics. Presently, the burn rate is divided into two parts: 80% allocated to the burn mechanism and the remaining 20% split equally between the community and oracle pools.

The proposed increase to a 1.5% LUNC tax rate carries several implications. If approved, it would raise the burn allocation from 0.4% to 1.2%, effectively tripling contributions to both the community pool and the oracle pool. This higher tax rate is expected to accelerate the burning of LUNC and USTC, boost funding for both pools, and ultimately support long-term staking rewards.

Optimism And Caution Within The Community

JesusisLord remains optimistic about the proposal’s potential benefits for the LUNC ecosystem. He believes it would substantially improve the token burn rate and enhance financial support for community projects and staking rewards. However, users are also carefully considering the proposal’s potential impact on LUNC’s market price.

In the last 24 hours, LUNC experienced a 4.39% decline, continuing a pullback from its July high of $0.000096140. Coinmarket data indicates that the altcoin was trading at $0.00007568 at the time of writing.

We are on twitter, follow us to connect with us :- @FXCryptoNews
— FXCryptoNews (@FXCryptoNews) December 14, 2023

As the community deliberates on the proposed increase in the burn tax rate, the outcome remains uncertain. Nevertheless, the proposal’s potential to influence the LUNC ecosystem and its market value keeps users engaged and watchful.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.