Terra Luna Classic’s New Burn Tax Reform Gains Validator Approval

The Terra Luna Classic (LUNC) community is voting on a crucial proposal to revise the burn tax distribution. Developer Frag from Genuine Labs submitted this pay-per-job (PPJ) proposal, which introduces significant changes following the community-approved proposal 12098 in April. Both community and validator approval are necessary for its implementation.

Proposed Changes To Burn Tax Allocation

The proposal suggests adjusting the current 0.5% burn tax allocation. Currently, 80% goes towards burning, with the remaining 20% split between the community pool and validator rewards. The new plan proposes distributing 10% each to the Community pool and Oracle pool, thereby enhancing long-term staking rewards. Frag’s detailed plan includes technical updates like configuring the ante handler with new distribution logic, parameter adjustments, proposal type modifications, and comprehensive unit testing.

Moreover, a coordinated chain halt will be required for the rollout, with an estimated completion time of 56 hours at a cost of $3600 in LUNC. If implemented, the proposal will significantly benefit validators by boosting long-term staking rewards, though it will slightly decrease the annual percentage rate (APR) for users by about 0.5%. The proposal has overwhelming support from 99.97% of validators, including prominent names like Interstellar Lounge, JESUSisLORD, and StakeBin. However, some top validators have yet to cast their vote, indicating ongoing deliberation within the community.

Market Response To The Proposal

Despite the promising changes, LUNC’s price has been affected by the broader market downturn. The latest trading report shows a 5% drop in LUNC over the past 24 hours, settling at $0.0001024. Interestingly, this price decline has not deterred trading activity. Both trading volume and open interest in LUNC and 1000LUNC futures have seen a notable increase. Meanwhile, USTC’s price dropped over 4% to $0.02059, reflecting a 12% decline over the past week due to similar market pressures.

Terra Luna Classic community’s vote on the revised burn tax distribution proposal marks a pivotal moment. The enhancements to staking rewards are well-received. However, market volatility underscores the need for strategic decision-making in the fluctuating crypto market. The LUNC community’s engagement in refining its burn tax distribution through this proposal indicates a strong commitment to enhancing staking rewards and long-term ecosystem sustainability.

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

Despite temporary market setbacks, this move could provide substantial benefits to validators and the entire community, paving the way for future growth and stability.

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.