- Terra Luna Classic community proposes a major revision to the LUNC burn tax distribution to improve staking rewards, expected to cause initial price volatility.
- The proposal, enjoying strong community support with a 99.97% approval rate, aims to complete by mid-July and will redirect funds to long-term staking rewards and validator support.
The Terra Luna Classic community is embarking on a transformative journey by proposing a major revision to the LUNC burn tax distribution. This strategic move is intended to enhance staking rewards and overall network functionality, though it is expected to initially introduce price volatility.
Following a previous update by CNF, the Terra Luna Classic community has shown robust support for Genuine Labs’ proposal, allocating over 256 million LUNC to it. This endorsement underscores the community’s readiness to embrace strategic changes that promise to elevate the network’s value and functionality.
Recent updates from Coin Market Cap reveal that the community is currently voting on a significant proposal to revise the LUNC burn tax distribution. This initiative, emerging from proposal 12098 approved earlier in April, requires backing from community members and validators to move forward. Developer Frag has introduced changes (proposal 12114) that aim to adjust the current 0.5% burn tax distribution from 80% allocated to burning and 20% for community and rewards to a new model where 10% is directed to the Community Pool and 10% to the Oracle Pool.
Community Support and Technical Implementation
The proposal includes extensive testing phases to ensure that the changes are implemented correctly. The project, estimated to cost $3600 in LUNC and take 56 hours, targets completion by mid-July. This redistribution is expected to slightly decrease the annual percentage rate (APR) by about 0.5%, but it will redirect more funds towards long-term staking rewards and bolster support for validators. Currently, the proposal enjoys an impressive 99.97% approval rate, indicating strong community backing.
Blockchain expert Collin Brown noted in his tweet that the development aims for completion by mid-July, anticipating initial price volatility. Despite market selloffs, trading volumes for LUNC and USTC futures have surged, suggesting an active market response to these anticipated changes.
Terra Luna Classic proposes adjustments to the LUNC burn tax distribution, possibly leading to further price declines. The plan allocates 10% of the tax to the Oracle pool, enhancing staking. Developers target completion by mid-July, foreseeing initial price volatility. Seeking… pic.twitter.com/vtowCJCvKk
— Collin Brown (@CollinBrownXRP) June 11, 2024
As per the latest data from Coin Market Cap, Terra Classic (LUNC) is currently priced at $0.0001005, marking a decline of 2.89% over the past day and 15.42% over the past week. This fluctuation reflects the market’s reaction to the proposed changes, which are expected to stabilize over time as the benefits of the new distribution model become apparent.
Terra Luna Classic’s proposed overhaul of the LUNC burn tax distribution is a bold step towards enhancing network value and staking rewards. While initial price volatility is anticipated, the strong community support and strategic vision behind these changes hold promise for the network’s future stability and growth.
