- The Terra Luna Classic (LUNC) community is in the process of voting on a revised proposal for its burn tax distribution, submitted by developer Frag from Genuine Labs.
- This proposal aims to modify the current burn tax allocation to improve staking rewards for validators and the broader community.
- Despite the proposal’s potential benefits, LUNC’s price has dropped 5% in the latest market sell-off, although trading volume and open interest have seen a rise.
Discover the latest developments in the Terra Luna Classic ecosystem, as a new proposal to enhance staking rewards gains overwhelming support amid a volatile market.
Community Votes on Revised LUNC Burn Tax Distribution Proposal
The Terra Luna Classic (LUNC) community is actively voting on a critical proposal to revise the distribution of its burn tax. Submitted by developer Frag from Genuine Labs, this pay-per-job (PPJ) proposal outlines significant changes to the current burn tax structure following the community-approved proposal 12098 in April. It requires both community and validator approval to be implemented.
Details of the Proposal
The proposal aims to adjust the current allocation of the 0.5% burn tax, which presently directs 80% for burning and splits the remaining 20% between the community pool and validator rewards. The new plan suggests a distribution change to 10% each for the Community pool and Oracle pool, thereby enhancing long-term staking rewards. Frag’s detailed implementation plan includes technical updates such as configuring the ante handler with new distribution logic, parameter adjustments, proposal type modifications, and comprehensive unit testing. Additionally, 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.
Impacts on Validators and Staking Rewards
If implemented, the proposal would significantly benefit validators by boosting long-term staking rewards, albeit with a slight decrease in the annual percentage rate (APR) for users by approximately 0.5%. The proposal enjoys overwhelming support from 99.97% of validators, including prominent names such as Interstellar Lounge, JESUSisLORD, and StakeBin. Nevertheless, some top validators have yet to cast their vote, indicating the ongoing deliberation process within the community.
Market Response to the Proposal
Despite the promising changes outlined in the proposal, LUNC’s price has not been immune to the broader market downturn. As of the latest trading report, LUNC experienced a 5% drop over the past 24 hours, settling at $0.0001024. Interestingly, this price decline has not deterred trading activity, as both trading volume and open interest in LUNC and 1000LUNC futures have seen a notable increase. Concurrently, USTC’s price has dropped over 4% to $0.02059, reflecting a 12% decline over the past week, indicating similar market pressures.
In conclusion, the 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, but the market volatility underscores the need for strategic decision-making to navigate the crypto market’s fluctuating landscape.
Conclusion
In summary, the LUNC community’s engagement in refining its burn tax distribution through the latest proposal indicates a strong commitment to enhancing staking rewards and long-term ecosystem sustainability. Despite experiencing temporary market setbacks, this move could provide substantial benefits to validators and the entire community, paving the way for future growth and stability.
