- Terra Classic developer suggests ascribing 10% of LUNC burn tax to Oracle Pool.
- Terra Luna Classic’s (LUNC) slimming liquidity points to extra sell pressure.
- LUNC inked 4.6% gains after the proposition got approved by the community.
The battle-tested Terra Luna Classic community has cast its votes on proposal #12098, tackling discrepancies in rewards allocation. The text proposal labeled “Changing the Reward Share Distribution of the Burn Tax” explains that the current 0.5% burn tax is distributed in two parts: 80% burn and 20% distribution.
The 20% distribution is divided into three separate allocations: 80% of the tokens will burnt, 10% to the Community Pool (CP), and the remaining 10% allocated to immediate block rewards.
The author of proposal #12098 seeks to change this 0.5% LUNC burn tax distribution to mirror the 80% burn distribution while dividing the other 20% evenly between the Community Pool and Oracle Pool.
When activated, this would impact the performance of the Terra Luna Classic chain in several ways. Firstly, block rewards would only consist of gas fees, as originally intended before the 0.5% burn tax distribution. Additionally, there would be no immediate block rewards, but a percentage of the tax would be allocated to the Oracle Pool.
It’s worth noting that this particular proposal doesn’t change the 0.5% burn tax rate, nor does it change the cumulative LUNC burn sum. However, the intention to send a portion of the burn tax to the Oracle Pool for long-term staking appeals to many Terra Luna Classic validators, as this could help to reduce LUNC inflation.
For example, Terra Classic chain validator Lunanauts was one out of the 37 validators who approved the LUNC burn tax proposition. Supporting the change, Lunanauts explained that LUNC proposal 12098 “promotes sustainability and balance in the ecosystem, mitigating concerns about immediate rewards reduction.”
The proposition is considered to be a huge stride towards making Terra Luna Classic’s staking environment fair for every participating party. Approved by 70% of voters, the enthusiasm for Terra Luna Classic’s tax burn proposal is yet to reflect on LUNC’s price.
On the Flipside
- LUNC remains under strong sell pressure, as pending sales outweigh the pending bids by $3 million to $1 million.
- The uneven liquidity books in spot markets suggest that overall trading activity had dropped by 16%, hinting at slimming market depth.
Why This Matters
After Terra Luna’s crisis in May 2022, the community has taken measures upon themselves to revitalize the Terra Classic blockchain by voting on improvements in a democratic way through governance proposals.
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