- The Terra Luna Classic community has recently approved a significant proposal to alter the LUNC burn tax distribution mechanism.
- This change, once implemented, will have both positive and negative consequences for community members.
- The proposal was widely accepted, garnering 98.04% of the votes in favor.
Discover the latest development in Terra Luna Classic as the community overwhelmingly votes to revise the LUNC burn tax distribution in favor of long-term benefits.
Terra Luna Classic Community Approves Burn Tax Distribution Revision
The Terra Luna Classic community has voted in favor of proposal 12114, submitted by developer Till Z., also known as Fragwuerdig. This proposal seeks to modify the burn tax distribution, aligning it with the directives set in the previously passed proposal 12098. The modification involves reallocating a portion of the tax towards the oracle pool split, intended for implementation by mid-July.
Substantial Community Support for the Proposal
The proposal received an overwhelming 98.04% approval rate from the community, reflecting strong support from validators. Among the 47 validators participating in the vote, major players such as Allnodes, Interstellar Lounge, JESUSisLORD, Stakely, and HappyCattyCrypto endorsed the proposal enthusiastically.
Implications of the Burn Tax Redistribution
Currently, the LUNC burn tax is set at 0.5%, with 80% allocated for burning and the remaining 20% distributed equally between the Community Pool and rewards. Under the new proposal, this 20% will be divided equally between the Community Pool and the Oracle pool. This shift will likely affect immediate block rewards for LUNC users, directing a portion towards long-term staking rewards. As a result, validators stand to benefit, although the APR is anticipated to decrease by approximately 0.5%, depending on on-chain volumes.
Impact on LUNC and USTC Prices
The recent vote coincides with a dip in the prices of LUNC and USTC, with both tokens hitting two-month lows. If LUNC fails to maintain its support level at $0.000090, bearish trends may continue. As of now, LUNC is trading at $0.0009051, down by over 4% in the past 24 hours. Trading volumes have also declined by 7% during the same period, despite the favorable terms under the Binance LUNC burn mechanism.
Similarly, the price of USTC has seen a 5% drop, currently trading at $0.0184. The trading volume for USTC has only seen a slight 2% decrease, indicating that some traders are taking advantage of the dip to buy more tokens.
Conclusion
The Terra Luna Classic community’s decision to alter the burn tax distribution is a notable development with long-term implications. While the proposal received substantial support, its impact on immediate rewards and token prices will be closely monitored by the community and investors alike. With these changes set to be implemented by mid-July, the coming weeks will reveal how they influence the overall ecosystem and market dynamics.
