- The Terra Classic community previously voted to raise the LUNC burn tax rate.
- Genuine Labs shared an important update regarding the Tax2Gas activation.
- Shuttle Bridge is temporarily reopened as the community expects more burns.
Last month, the community behind the Terra Luna Classic (LUNC) blockchain voted nearly unanimously to implement a game-changing upgrade. The Tax2Gas mechanism, pivotal for chain growth, erases the need to calculate the LUNC burn tax manually.
The Highly-Awaited LUNC Burn Tax Raise
The critical chain upgrade accelerates the LUNC burn tax rate from 0.5% to 1.5%. While the 1.2% burn tax rate was intended before Terra Luna’s system crash in May 2022, the extra 0.3% is set to fund further development and renovation of the chain.
While the LUNC community blessed proposal #12120, “Genuine Labs’s Tax2gas Implementation,” in early August 2024, Genuine Labs, the developer company responsible for executing this order, was off the radar for most of August. The company broke its silence on September 6, 2024, dishing out a couple of critical LUNC updates.
Genuine Labs first addressed the internal conflicts among team members, pledging to have found a viable solution to the “threats, harassment and responsibility deviation.”
Moreover, the developer company raised concerns about misleading information from third parties and concluded that LUNC enthusiasts should only expect updates from Genuine Labs’ official handle or LUNCLIVE.
Is the LUNC Burn Upgrade Completed?
Due to popular demand, Terra Luna Classic’s Tax2Burn upgrade could drastically reduce the overprinted supply. However, several network delegators and validators have complained about the delay in executing this already-approved proposal.
Fortunately, Genuine Labs stated in a September 6, 2024 message that “Tax2Gas is finished” and that the developers are now focusing on providing the chain with a “Finished product deployable on-chain.” The message asserted that further testing would be done on the Rebel testnet “until satisfaction is met.”
While the message didn’t specify when this testing is to be completed, LUNC’s chain recently received other crucial upgrades that could impact LUNC’s price in the near future.
Specifically, TerraForm Labs reopened the Shuttle Bridge as part of the bankruptcy process. The Shuttle Bridge lets holders return their wrapped Terra Luna Classic coins to the original network.
After a preliminary period of 30 days, all LUNC and Terra Classic USD (USTC) assets remaining in this Shuttle Bridge will be burnt, potentially adding a substantial contribution to Terra Luna Classic’s communal burning efforts and the hiked LUNC burn tax rate.
On the Flipside
- Some Terra Classic community members argue that garnering a higher trading volume on the network should be prioritized before implementing a higher LUNC burn tax rate, as it can scare away large investors.
Why This Matters
Building new applications on top of Terra Classic’s chain can bolster network usage, while rule implementations such as a clearly calculated burn tax add clarity to the chain’s revival efforts.
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