Just-In: Terra Luna Classic Community Revises LUNC Burn Tax

Terra Luna Classic community has approved a proposal to revise the LUNC burn tax. To be more clear, the reward share distribution of the burn tax will be changed instead of the burn tax rate.

Meanwhile, LUNC price loses steam for further recovery as broader crypto market remains under selling pressure ahead of $9.4 billion crypto options expiry.

Terra Luna Classic Burn Tax Proposal Passed

Proposal 12098 “Changing the Reward Share Distribution of the Burn Tax” is passed successfully by the Terra Luna Classic community. This changes the burn tax distribution to the community pool and Oracle pool.

Notably, the proposal doesn’t change the burn tax rate, nor the amount sent to burn. It just changes the burn tax distribution to oracle pool instead of rewards. The proposal has received 70% votes in favor with 37 validators in support of the proposal.

“The technical details of this can be a bit complex. I will try to simplify some of it at the cost of a little less precision in definitions and numbers. This draft has been up a few weeks ago with more details on block proposer rewards. I removed those parts as proposer rewards will be removed with SDK 0.47, said developer StrathCole.

Terra Classic has a burn tax set to 0.5%. Out of this, 80% is for burn and 20% is distributed as 10% to Community Pool and 10% to rewards. After the proposal, the 20% will be distributed as 10% to Community Pool and 10% to Oracle pool.

Instead of immediate block rewards, the portion from the burn tax would go into long-term staking rewards (Oracle). However, it would decrease the APR by about ~0.5%, which depends on on-chain volumes.

Also Read: Binance Founder Changpeng “CZ” Zhao Requests Probation, Gets Unprecedented Support

LUNC and USTC Fell

LUNC price fell 8% in the last 24 hours amid market-wide selloff, with the price currently trading at $0.0001027. The 24-hour low and high are $0.0001014 and $0.0001115, respectively. Moreover, trading volume decreased slightly in the last 24 hours, indicating a decline in interest among traders.

Meanwhile, USTC price also fell over 8%, with the price changing hands at $0.01842. The price climbed 20% higher last week. The 24-hour low and high are $0.01814 and $0.01997, respectively.

Also Read: Why Crypto Prices Are Taking A Dip Today?