Terra Luna Classic Rejects Burn Tax Increase Proposal, LUNC Price Rises

• The Terra Luna Classic community has rejected Proposal 12105.

• The proposal to increase the burning tax to 1.5% was met with a lot of opposition.

The Terra Luna Classic community has rejected Proposal 12105 which sought to increase the LUNC burn tax. The Luna Classic Community also opposed the proposal because there was no rationality and proper plan for its implementation. Although the burn tax concept was rejected, conversations about the burn tax are still prevalent in the Terra Luna Classic ecosystem.

Proposal 12105 Faces Strong Opposition

Proposal 12105, which proposed an increase of the burn tax to 1.5%, was met with a lot of opposition from the community and validators. It was condemned as illogical and a “lazy effort.” ’The critics argued that it was only a text proposal and not a parameter change, which would have been incapable of implementing any changes to the burning tax even if passed.

This week in $LUNC governance:

#12105 – Increase burn tax
#12110 – Genuine Labs: v3.0.1
#12111 – Change Burn Tax Split pic.twitter.com/PdHVtag3vo

— Duncan (@wrapped_dday) May 30, 2024

The proposal was just a text proposal, meaning it wouldn’t have altered the burn tax immediately. Even if it had passed, the bill would have required more proposals and discussions. The proposal got only 21.35% votes in favor of it. 32% of voters were against it, and 38% said “No with veto,” meaning that they were against it to the extent that they wanted it vetoed.

Some of the criticisms from both validators and community members included an absence of data, missing strategies, and ambiguous volume. All these problems played a role in its failure, and more work should be done in future proposals to prevent such problems.

Recent Changes to Burn Tax Distribution

On the other hand, the community recently made a new decision regarding the distribution of the LUNC burn tax. Instead of the burn tax going to rewards, it now goes to the Oracle pool. This change was approved with 70% of the votes and 37 validator approvals.

Currently, the LUNC burn tax is set at 0.5%. Of this, 80% is used for burning, while the remaining 20% is equally distributed between the Community Pool and the Oracle Pool. This change reveals that the community has been trying its best to utilize the burn tax funds appropriately for ecosystem development.

Terra Luna Classic Set for Significant v3.0.1 Upgrade

As previously reported by Crypto News Flash, Terra Luna Classic will undergo a major upgrade on June 2, 2024. This upgrade is set to occur at a block height of 18,303,000 and has received massive support from the community and the validators. 

Validators like Orion, Interstellar Lounge, and StakeBin will replace the old binary with the new one. This improves the chain’s performance, reliability, and protection. The upgrade seeks to enhance the functionality of the Terra Luna Classic network while making it more efficient and robust.

Lunc, USTC Price and Market Sentiment

Despite Proposal 12105’s rejection, the LUNC price decreased by 5% in the past 24 hours. LUNC is currently trading at $0.0001105. In addition, trading volume also declined by 7%, which shows that more traders participated in trading.

At the same time, the former stablecoin, USTC, has retained its price at $0.02179 after a 4% drop. The highest and lowest prices for USTC in the last 24 hours were $0.02377 and $0.02152, respectively.