Why Terra Luna Classic Refusing Pro-LUNC Burn Proposals? Price Nose-Dives

The Terra Luna Classic community surprisingly turns down three proposals to burn more LUNC tokens despite eagerly awaiting massive burn events. The Terra Luna Classic price records comparatively more fall to other crypto amid the selloff in the broader crypto market.

Proposal 11385 “1.2% burn tax till 5 trillion supply. Back to 0.2% after that” aims to balance the utility and burns on the Terra Luna Classic network. It proposes to increase the burn tax back to 1.2% till the supply reaches 5 trillion and reduce it to 0.2% again after the target. It claims developers could work until then to bring LUNC burns through utility.

Proposal 11394 “Parameter Change: Adjust Tax AnteHandler to 75/25% split from 90/10%” aims to increase the community pool funding rate for Joint L1 Task Force and other developers. It proposes to modify the on-chain tax AnteHandler from its current value of 90/10% (90% burn 10% community pool) to 75/25% (75% burn 25% community pool). While it doesn’t change the overall tax rate of 0.2%, passing the proposal would have resulted in 150% more funding to the community pool.

Proposal 11397 “Burn Tax Review (0.8%)” by Terra Rebels developer Vegas aims to increase the current tax burn rate from 0.2% to 0.8%. The proposal aims to address community concerns about low burn rates and increase the efficacy of the tax system. While the proposal can increase the LUNC burn rate, some opposed it and blame Vegas for attacking the governance and chain.

The community believes increasing the burn rate will impact trading volume, make Binance withdraw its burn mechanism, and prevent projects from coming on the chain.

Terra Luna Classic (LUNC) Burn Already Rising

The LUNC burn campaign by the community picked pace after Binance resumed its burn mechanism after months to burn 8.85 billion tokens. On Tuesday, Cremation Coin burned over 106 million Terra Luna Classic (LUNC) tokens in a single transaction amid a coordinated approach to burn more LUNC, pushing the total burn near 50 billion.

LUNC price fell 11% in the last 24 hours, with the price currently trading at $0.000126. The LUNC price has already lost early 2023 gains and is trading near the key support level. The selloff in the crypto market will continue to impact the token prices.

Also Read: Big Short Michael Burry Hints At Market Bottom Soon