LUNC Burn, a Twitter account that tracks LUNC burn events, said yesterday that the 1.2% tax plan will be up for a vote on September 10 and activated around September 20.
“This is the official date’s for the proposal to activate the 1.2% tax burn. The prop will be on or before 10th September, and the activation date once it passes will be on or around 20th September,” the LUNC burn tracker wrote.
Notably, remarks from LUNA Burn support those made by TerraRebel, a community organization for Terra Classic. The organization warned followers in a tweet sent out yesterday to anticipate the tax plan going up for voting in a week.
It’s important to note that Terra LUNA classic has increased as a result of the tax proposal to cut down on the excessive supply of LUNC tokens. According to The Crypto Basic, KuCoin ran out of the token as demand increased by over 65%. Furthermore, Binance reached a peak trade volume of over $1 billion.
Users will be charged a 1.2% fee on all on-chain transactions, including wallet interactions and smart contracts if the 1.2% tax proposal is accepted. The burn wallet offered by Terra receives this fee, which causes the supply of LUNC to decrease. Notably, without the support of exchanges, the parameter modification cannot be applied to exchanges. As a result, given that the majority of Terra LUNA classic transactions take place on centralized exchanges, this has caused some users to express worry.
However, the idea has already received backing from two exchanges, notably MEXC Global. Notably, MEXC has already spent around 48 million LUNC in trading fees during its two-week event to indicate support for the plan. The idea raises the cost of Terra LUNA classic transactions, but it seems Terra Classic LUNAtics is unwilling to pay the premium.
In June, the concept of taxing LUNC transactions initially emerged. However, a more thorough suggestion made by neighborhood resident Edward Kim earlier this month has gathered support. Notably, LUNC DAO, a validator for the Terra LUNA classic community, recently revealed that members of the LUNC community have established contact with Terra creator Do Kwon.
Terra LUNA classic is now trading at $0.0003508, up 124.39% over the previous seven days.