Reviving LUNC Prices: The Controversy Over Proposed 1.2% Burn Tax

Posted on by Artificial Intelligence
Cryptocurrency controversy, moody setting, dark color palette, intense debate, opposing factions, validator character defending proposal, community members expressing concern, a large burn tax looming above, Terra Classic logo, clock indicating upcoming v2.1.0 upgrade, hint of hopeful light.

The Terra Classic community is currently exploring various methods to revive the prices of LUNC and USTC to $1. One such proposal on the table is to reinstate the LUNC burn tax to 1.2%. However, the initial voting and feedback from Terra Classic members and validators suggest that the proposal may not succeed.

The proposal, titled “Final Vision Plan for LUNC to $1+” by validator JESUSisLORD, seeks to increase the LUNC on-chain tax to 1.5%, with 1.2% as the burn tax and 0.3% allocated to the community pool. Despite earlier proposals to increase staking rewards and exempt dapps from the on-chain tax, some members of the Terra Classic community have voiced their concerns. They argue that the 1.2% burn tax could harm LUNC trading volumes on crypto exchanges like Binance and deter whales due to the high burn tax.

As it stands, the proposal has garnered only 20% of votes in favor, while 77% have voted “No with veto.” Major validators such as TCB, MAX, LunaClassic.com, LUNC Development Fund, and Lunanauts have also voted in opposition. Nevertheless, some community members are pushing for others to vote NO or No with veto, as they believe the high burn tax could negatively impact LUNC in the long run.

Despite these differences, Terra Classic is set to undergo a significant v2.1.0 upgrade on June 14, achieving parity with other blockchains, such as Terra 2.0 and Cosmos. The community is hopeful that the CosmWasm v2.1.0 parity upgrade may help revive LUNC’s value to $1, as it will restore utility to the chain.

Additionally, core developer Edward Kim’s AI app chain “Block Entropy” will soon be integrated into Terra Classic. Developers have revealed a few of Block Entropy’s features, which could contribute positively to LUNC’s prospects.

In the meantime, LUNC’s price has experienced a slight uptick, rising 1% in the last 24 hours, with the price currently trading at $0.000085. However, trading volume remains low, signaling a lack of interest from traders.

Despite this, LUNC’s price has rebounded from $0.000083 following the Binance LUNC burn and increased sentiment due to the major changes coming to the chain. While the debate around the 1.2% burn tax continues, it remains to be seen how the community’s decision will shape the future of LUNC and its value.

Source: Coingape

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