- The Terra Luna Classic community decisively rejected a proposal to increase the LUNC burn tax to 1.5%, with 32% voting “No” and 38% voting “No with veto.”
- Following the rejection, LUNC’s price jumped 5%, reflecting rising interest and confidence among traders.
Terra Luna Classic Rejects LUNC Burn Proposal
In a decisive move, the Terra Luna Classic community has turned down the proposal to increase the LUNC burn tax to 1.5%. This decision came after extensive discussions among community members and validators, who expressed their frustration with the recurring proposals to alter the burn tax, particularly those advocating for an increase.
The community’s decision to reject the proposal is seen as a clear message against frequent changes without substantial justification. The proposal, identified as Proposal 12105, was criticized for its lack of reasoning and was labeled a “lazy effort” by many within the community. This proposal was a text-based suggestion rather than a parameter change, meaning it would not have directly altered the tax even if it had passed. A new, more detailed proposal would be needed to initiate any actual change.
The proposal received only 21.35% of votes in favor, while 32% voted “No,” and a significant 38% voted “No with veto,” effectively shutting down any further discussion on the matter. Validators also rejected the proposal, citing the absence of supporting data, complementary strategies, and volume projections necessary to justify the tax increase.
Recently, the community voted to adjust the LUNC burn tax distribution, redirecting it to the oracle pool instead of rewards. This proposal garnered 70% support, with 37 validators in favor. Currently, Terra Classic has a burn tax set at 0.5%, where 80% is allocated for burning, and the remaining 20% is split equally between the Community Pool and the Oracle Pool.
LUNC Price Jumps Amid Rising Sentiment
Following the rejection of the burn tax proposal, LUNC’s price saw a notable jump of 5% in the last 24 hours, with the current trading price at $0.0001245. The 24-hour trading range has seen lows of $0.0001143 and highs of $0.0001310. Additionally, trading volume surged by 100% in the same period, reflecting growing interest among traders.
USTC also experienced a 5% price increase, trading at $0.0241. The 24-hour low and high were $0.02246 and $0.02477, respectively. This positive movement in prices coincides with Terraform Labs and its former CEO, Do Kwon, reaching a settlement with the SEC. The proposed final judgment is expected to be filed with the court by June 12.
The Terra Luna Classic community’s decision to reject the burn tax increase and the subsequent rise in LUNC and USTC prices indicate a resilient and strategic approach toward the ecosystem’s revival efforts. As the community continues to navigate these proposals and market reactions, the focus remains on sustainable growth and stability.
