luna burning
  • The Terra Luna Classic community has decisively rejected a proposal to increase the burn tax to 1.5%, with 70% of votes against the measure.
  • Despite the rejection, LUNC’s price saw a 1% increase and trading volume surged by 70%, reflecting heightened market interest.

In the latest developments, the Terra Luna Classic (LUNC) community has once again turned down a proposal to increase the burn tax to 1.5%, a move that was met with widespread disapproval. Despite the rejection, LUNC’s price saw a modest increase of 1% over the last 24 hours, indicating a mixed sentiment in the market.

Community Stands Firm on Burn Tax Decision

The proposal in question, labeled Proposal 12105, aimed to raise the burn tax to 1.5%. However, it was swiftly vetoed by community members and validators alike. The proposal received only 21.35% of “Yes” votes, with 32% voting “No” and a significant 38% voting “No with veto.” This overwhelming rejection highlights the community’s dissatisfaction with recurrent suggestions to alter the burn tax without substantial reasoning or supportive data.

Critics of the proposal pointed out its lack of a compelling description and the absence of detailed discussion. As it was a text proposal rather than a parameter change, even if it had passed, it would not have directly modified the tax. To enact such changes, a new, well-justified proposal would need to be presented, complete with comprehensive discussions and volume projections.

Validators echoed these sentiments, emphasizing that there is no data to support the tax increase and no complementary strategies to justify such a move. Additionally, there are no clear volume projections that would necessitate a change in the burn tax.

Recently, the community voted in favor of redirecting the LUNC burn tax distribution to the oracle pool instead of rewards. This change saw substantial support, with 70% voting in favor and 37 validators backing the proposal. Currently, Terra Classic has a burn tax set at 0.5%, where 80% of this is allocated for burning and 20% is split equally between the Community Pool and the Oracle Pool.

Market Reaction and Trading Volumes

Following the rejection of the burn tax proposal, LUNC’s price experienced a slight uptick, trading at $0.0001145. The price fluctuated within a range of $0.0001143 to $0.0001207 over the last 24 hours. The increased trading volume, which surged by 70%, suggests a heightened interest from traders despite the ongoing debates about the burn tax.

In contrast, USTC, Terra Luna Classic’s stablecoin, traded sideways at $0.02237, with minor fluctuations between $0.02246 and $0.02377 in the same period.

The community’s steadfast decision to reject the burn tax increase reflects their commitment to thoughtful and data-driven changes. As Terra Luna Classic continues to navigate these proposals, the focus remains on strategies that are well-supported and beneficial for the ecosystem as a whole.

By vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.