Will Terra Luna Classic Burn Tax Increase?
The Terra Luna Classic (LUNC) community is currently engaged in discussions over a proposal to increase the burn tax from 0.5% to 1.5%. This initiative aims to enhance the burn rates for LUNC and USTC, build a robust community pool, and positively affect the network’s economy. However, opinions within the community are sharply divided about this potential change.
What Are the Community’s Opinions on the Tax Hike?
Community members are split regarding the proposed tax hike. On one side are supporters, including Binance CEO Changpeng Zhao, who advocate for maintaining lower tax rates. Conversely, another group insists that increasing the tax rate is crucial for sustaining on-chain operations and overall network growth in the long term.
The Terra Luna Classic (LUNC) community is currently engaged in discussions over a proposal to increase the burn tax from 0.5% to 1.5%. This initiative aims to enhance the burn rates for LUNC and USTC, build a robust community pool, and positively affect the network’s economy. However, opinions within the community are sharply divided about this potential change.
What Are the Community’s Opinions on the Tax Hike?
Community members are split regarding the proposed tax hike. On one side are supporters, including Binance CEO Changpeng Zhao, who advocate for maintaining lower tax rates. Conversely, another group insists that increasing the tax rate is crucial for sustaining on-chain operations and overall network growth in the long term.
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How Will Voting Impact the Proposal?
The voting process is currently underway under proposal number 12149 via the Station wallet. If approved, the tax rate would rise to 1.5% and remain fixed until the overall supply drops to 10 billion LUNC. Both users and developers have voiced their opinions, leading to a mix of criticism and support for this amendment.
The proposal has garnered attention, with voting results reflecting a divided stance: 43.24% in favor, 16.01% against, and 40.74% opting for a veto. Some validators have expressed concern over potential disruption to ongoing developer initiatives.
Raising the burn tax may significantly boost LUNC and USTC burn rates.
The community pool could see increased funds, enhancing overall liquidity.
Market impact on LUNC’s price might be positive in the long run, despite current volatility.
The outcome of this voting represents a critical juncture for the Terra Luna Classic community, influencing both the on-chain economy and the market trajectory for LUNC and USTC tokens. The community’s decision will be crucial in shaping their strategic direction moving forward.
The voting process is currently underway under proposal number 12149 via the Station wallet. If approved, the tax rate would rise to 1.5% and remain fixed until the overall supply drops to 10 billion LUNC. Both users and developers have voiced their opinions, leading to a mix of criticism and support for this amendment.
The proposal has garnered attention, with voting results reflecting a divided stance: 43.24% in favor, 16.01% against, and 40.74% opting for a veto. Some validators have expressed concern over potential disruption to ongoing developer initiatives.
Raising the burn tax may significantly boost LUNC and USTC burn rates.
The community pool could see increased funds, enhancing overall liquidity.
Market impact on LUNC’s price might be positive in the long run, despite current volatility.
The outcome of this voting represents a critical juncture for the Terra Luna Classic community, influencing both the on-chain economy and the market trajectory for LUNC and USTC tokens. The community’s decision will be crucial in shaping their strategic direction moving forward.
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Terra Luna Classic was trading at $0.000060 on Wednesday, where it has remained over the past few days. The token has dropped by over 66% from its December high.
LUNC continued to slide even as more coins were incinerated. According to LUNC Metrics, over 727 million tokens were burned in the past seven days. These burns brought the total number of tokens destroyed since inception to over 407 billion.
Most of this week’s burns came from the Luna Foundation Guard, which burned over 211 million tokens on Wednesday. It also incinerated more than 1.7 billion TerraClassic USD tokens.
Terraform Labs established the Luna Foundation Guard to support the growth of the Terra ecosystem, particularly its stablecoin.
LUNC price has also remained flat after some users proposed to introduce a phased approach to establish an on-chain liquidity for the USD Coin
The goal is to set up USDC/LUNC liquidity pools to improve on-chain liquidity, provide decentralized finance utility, reduce reliance on centralized exchanges, and create arbitrage opportunities. Additionally, the pair would help generate tax volume and increase the burn rate.
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The daily chart shows that Terra Luna Classic has stalled at a key support level, one it has failed to break below multiple times since July last year. This suggests that bears are hesitant to push LUNC lower at current levels.
LUNC remains below the 50-day moving average and the descending trendline connecting the swing highs since Jan. 19. This indicates the formation of a descending triangle, a popular bearish continuation pattern.
More downside would be confirmed if the price breaks below the horizontal support that connects the lowest level since July 2024. A break beneath that zone could push LUNC to the next key support at $0.000047, approximately 22% below the current level.
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