Terra Luna Classic Community Updates LUNC Burn Tax

The Terra Luna Classic community has approved a change to the LUNC burn tax, shifting the reward share distribution to the oracle pool.

The Terra Luna Classic community has welcomed and supported a proposal to alter the LUNC burn tax. To enhance clarity, we will alter the reward share distribution of the burn tax instead of changing the burn tax rate.

While this is going on, LUNC’s price is losing speed for further recovery as the broader cryptocurrency market continues to be under selling pressure in advance of the expiration of $9.4 billion worth of crypto options.

Terra Luna Classic Burn Tax Proposal Passed

The Terra Luna Classic community has successfully approved Proposal 12098, titled “Changing the Reward Share Distribution of the Burn Tax.” The Oracle pool and the community pool will now receive the burn tax allocation as a result.

Importantly, the proposal does not alter either the rate of the burn tax or the amount that is sent to be burned. Simply put, it shifts the allocation of the burn tax to the oracle pool rather than the rewards.

70% of the votes cast were in favor of the plan and 37 validators voted in favor of the proposal. The technical aspects can be a little bit difficult to understand.

I will make an effort to simplify some of it, but I will do so at the expense of using definitions and numbers that are a little less precise. We published this draft a few weeks ago, which includes further information on the rewards for block proposers said StrathCole.

The developer, StrathCole, informed me that I removed those components because SDK 0.47 will eliminate the benefits for proposers. Terra Classic sets the burn tax at 0.5%.

We divide the remaining 20% as follows: 10% goes to the community pool and another 10% goes to rewards. We will burn 80% of this amount.

The plan calls for splitting the 20%, with 10% going to the Community Pool and another 10% to the Oracle Pool. We would invest the collected burn tax percentage in long-term staking rewards (Oracle) instead of distributing it as instant block rewards.

On the other hand, it would result in a reduction of around 0.5 percent in the annual percentage rate (APR), which is contingent upon the size of the on-chain volumes.

As a result of a widespread market selloff, the price of LUNC has dropped by 8% over the past 24 hours, and it is currently trading at $0.0001027. $0.0001014 and $0.0001115 are the low and high values over the past 24 hours, respectively.

Furthermore, the amount of trading has declined slightly over the past 24 hours, indicating that traders are losing interest in the market.

In the meantime, the price of USTC also dropped by more than 8%, landing at $0.01842 at the time of the transaction. In the past week, the price has increased by 20%.

The low for the 24-hour period is $0.01814, and the high for the same period is $0.01997.