Selloff or Market Correction? Either Way, Here's What to Do Next!See Overvalued Stocks

Terra Classic’s LUNC Burn Tax Proposal: What You Need to Know

Published 14/06/2024, 12:45
Terra Classic’s LUNC Burn Tax Proposal: What You Need to Know

Terra Classic’s LUNC Burn Tax Proposal: What You Need to Know

LUNC/USD
-7.20%

Coin Edition -

  • Terra Classic community is voting on Proposal 12114 to adjust the burn tax.
  • The proposal aligns with the upcoming SDK 0.47 shift from block rewards to gas fees for staking rewards.
  • Initial support from community members was evident, with 24 votes.

The Terra Classic community is currently voting on a proposal to adjust the distribution of its LUNC burn tax, with a focus on funding the critical Oracle pool. This move follows a similar successful proposal in April and highlights the community’s ongoing efforts to optimize the token’s tokenomics.

A proposal, dubbed “Proposal 12098,” was submitted by community member SrathCole to modify the burn tax distribution. Currently, Terra Classic’s burn tax is set at 0.5%, with 20% allocated to burning and 20% to distribution, including 10% each to the Terra Classic Community Pool and rewards.

Strathcole proposes a redistribution of the tax burn, with 80% allocated to burning, 10% to the community pool, and 10% to the Oracle pool, replacing rewards. This adjustment aims to improve the tax distribution, ensuring long-term staking rewards and block rewards consisting solely of gas fees.

Former L1 Joint Task Force developer Frag has submitted another proposal, “Proposal 12114,” to formally approve the changes outlined in Srathcole’s proposal. The new proposal, submitted on June 9, has a seven-day voting period.

The proposal is yet to be approved, partly due to the absence of influential validators such as Allnodes, which commands 14.66% voting power. Nevertheless, other operators have voted to support the new proposal, with 24 votes cast and 1 abstained. Although further participation is required, the current voter outcome indicates significant backing by community members.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Christopher, a Terra Classic community member who runs the JESUSisLord validator, is one such proponent. On X (formerly Twitter), he endorsed the new proposal, stating that it will help fund the Oracle pool.

“The oracle pool as of yet has no funding source and is continually being depleted, and it’s important to direct funding to it,” Christopher stated.

As of press time, LUNC trades at $0.5294, dipping by 1.33% over the recent intraday session.

The post Terra Classic’s LUNC Burn Tax Proposal: What You Need to Know appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.