luna burning
  • Terra Luna Classic’s community has passed a proposal to revise the burn tax distribution, reallocating 20% of the tax to the Oracle pool as per proposal 12098, with overwhelming support of 98.04%.
  • This change aims to enhance long-term staking rewards and ecosystem sustainability, though it may marginally decrease the APR, and has already impacted LUNC’s market with a 4% price decline.

In a significant move for the Terra Luna Classic (LUNC) community, a key proposal to revise the burn tax distribution has been officially passed. The proposal, known as pay-per-job (PPJ) proposal 12114, received overwhelming support, with 98.04% of the community voting “Yes”. This development comes after the community’s decision to implement changes outlined in proposal 12098, which will take effect by mid-July this year.

The Terra Luna Classic community has been actively involved in shaping the future of LUNC, particularly in adjusting the burn tax distribution to better align with the needs and expectations of stakeholders. The proposal aims to split the burn tax, currently set at 0.5%, in a manner that is anticipated to enhance the long-term staking rewards and overall ecosystem sustainability.

Proposal Details and Impact

The recently passed proposal by popular developer Till Z., also known as Fragwuerdig, addresses the burn tax distribution by reallocating a portion of the tax to the oracle pool. As per the new plan, 80% of the burn tax will continue to be dedicated to burning LUNC tokens, while the remaining 20% will be split—10% to the Community Pool and 10% to the Oracle pool. This adjustment is designed to improve the staking environment for LUNC and provide additional support to validators.

This change is expected to have an immediate impact on block rewards for LUNC users. While it promises to enhance long-term staking rewards, it may slightly decrease the Annual Percentage Rate (APR) by approximately 0.5%, depending on on-chain transaction volumes. The adjustment also seeks to balance the needs of both the community and validators, ensuring a sustainable and rewarding environment for all stakeholders.

Community Support and Market Reaction

The overwhelming support for proposal 12114 underscores the community’s confidence in the direction set forth by the Terra Luna Classic governance. Notable validators such as Allnodes, Interstellar Lounge, JESUSisLORD, Stakely, and HappyCattyCrypto were among those who supported the proposal, signaling a broad consensus across the ecosystem.

Meanwhile, the market reaction to the news has been mixed. The price of LUNC has experienced a 4% decline over the past 24 hours, currently trading at $0.0009051. The trading volume has decreased by 7% during this period. On the other hand, the broader market conditions, particularly the Binance LUNC burn mechanism, have been supportive.

Looking Forward

With the revised burn tax distribution set to take effect by mid-July, the Terra Luna Classic community is optimistic about the future of LUNC. The focus now shifts to the implementation phase, where stakeholders will closely monitor the impact on staking rewards and market dynamics.

The passing of proposal 12114 marks a pivotal moment for Terra Luna Classic, setting the stage for enhanced ecosystem development and sustainability. As the community continues to evolve, these governance decisions will play a crucial role in shaping the future of LUNC.

The passage of the burn tax change proposal represents a significant milestone for the Terra Luna Classic community, reaffirming its commitment to transparency, governance, and sustainable growth.