The Terra Classic community recently approved four proposals focused on increasing the burn tax, LUNC burn, and staking, which could lead to significant changes within the network. The proposals passed include raising the LUNC burn tax to 0.5%, incentivizing staking, whitelisting Dapp contracts, and boosting community pool funds.
These decisions come as the LUNC price fell below $0.000010 last week, reaching levels not seen since May of last year when TerraUSD (UST) and LUNA prices experienced a dramatic collapse. This shift in community sentiment could prove essential in protecting the future of LUNC, as fears over Binance withdrawing its LUNC burn mechanism previously led to resistance against such proposals.
One notable proposal, number 11513, seeks to split the Burn tax with the Distribution Module, redirecting it away from the Community Pool. This change could enhance the rewards for staking, thereby increasing demand and benefiting validators on the network. The proposal received 82% “Yes” votes, which demonstrates strong community support for rewarding those staking in Terra Classic.
Another proposal, number 11514, changes the Burn Tax AnteHandler split from 90/10 to 80/20 to compensate for lost community pool funding caused by proposal 11513. The community approved this measure, with 83% of votes in favor.
However, proposal 11515 to increase the burn tax to 0.5% has garnered mixed responses. While 75% of community votes supported the proposal, some members expressed concern that Binance may remove its monthly LUNC burn mechanism in response. Additionally, this proposal aims to whitelist Dapps like Terraswap and Astroport from burn taxes, as the increased tax might reduce the volume and usage of decentralized applications such as exchanges.
Top validators, including TCB, StakeBin, JESUSisLORD, NITAWA, and Classy’s Sphere, have pledged their support for all proposals. With the upcoming v2.0.1 upgrade and Cosmwasm 1.1.0 Parity upgrade on May 31, the LUNC price may recover from its recent dips. Currently, the LUNC price is trading at $0.000090 after falling 1% in the last 24 hours.
While these proposals could result in substantial structural changes within Terra Classic, it remains crucial to consider market conditions and conduct thorough research before investing in cryptocurrencies. The market’s future unpredictable nature suggests that personal opinions may not always be representative of accurate predictions.
Source: Coingape
