Terra Classic Community Votes on Proposal 12114 to Adjust LUNC Burn Tax Distribution

• The Terra Classic community is currently voting on Proposal 12114 to amend the burn tax.
• The proposal aims to shift from block rewards to gas fees for staking rewards, aligning with the upcoming SDK 0.47 update.
• Initial feedback indicates strong support from the community, with 24 votes already cast.

Discover why the Terra Classic community is keen on Proposal 12114, which seeks to refine the LUNC burn tax and enhance the Oracle pool’s sustainability.

Proposal 12114: A Strategic Shift in Burn Tax Allocation

The Terra Classic community is deliberating on a crucial proposal to reevaluate the LUNC burn tax distribution. The primary objective is to secure adequate funding for the Oracle pool, pivotal for the ecosystem’s long-term viability. The proposal mirrors a previously successful initiative from April, showcasing the community’s sustained commitment to refining tokenomics.

The Details of Proposal 12098

Originally proposed by community member SrathCole, “Proposal 12098” suggests significant changes in how the burn tax is allocated. Currently, the burn tax is set at 0.5%, with 20% directed towards burning and another 20% split evenly between the Terra Classic Community Pool and staking rewards. SrathCole’s proposal recommends a new structure: 80% for burning, 10% for the community pool, and 10% for the Oracle pool. This redistribution aims to guarantee continuous staking rewards, which will now derive entirely from gas fees.

Follow-up by Proposal 12114

Former L1 Joint Task Force developer, Frag, advanced these modifications through “Proposal 12114,” submitted on June 9. This new proposal seeks to officially validate the suggested redistribution, offering a seven-day period for the community to cast their votes.

Community Response and Pending Approval

The proposal has garnered support, reflected by the 24 affirmative votes. However, influential validators such as Allnodes, commanding 14.66% voting power, have not yet participated, delaying full approval. Despite this, endorsements from other stakeholders indicate robust community backing.

Notable Endorsements from Community Members

Christopher, a recognized member of the Terra Classic community and operator of the JESUSisLord validator, advocates for the proposal. He voiced his support on X (formerly Twitter), emphasizing the necessity of funding the Oracle pool.

Conclusion

In summary, Proposal 12114 represents a pivotal effort by the Terra Classic community to optimize burn tax distribution and ensure sustainable rewards through gas fees. As the voting period unfolds, the community’s collective decision will be instrumental in shaping the future dynamics of the Terra Classic ecosystem.