Debate Heats Up Over Terra Luna Classic Burn Tax Increase

The Terra Luna Classic community is considering a substantial increase in the burn tax, potentially raising it from 0.5% to 1.5%.

This proposal has sparked debate, with some fearing that major exchanges like Binance might suspend the burn mechanism if the tax rate is raised.

Validator JesusisLord has put forward the idea of tripling the burn tax rate. He also suggests that the current rate should remain until the total LUNC supply reaches 10 billion, aligning with the original burn targets.

The proposed increase would triple contributions to both the community and oracle pools, enhancing long-term staking rewards.

However, the proposal hinges on the successful implementation of the Tax2Gas feature, expected to launch in August. Without this, the proposal won’t proceed to a governance vote.

Recent market data shows a 3% decline in LUNC’s price and a 4% drop in USTC, with trading volumes also decreasing significantly.