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Terra Classic LUNAtics inch closer to voting and approving a 1.2% tax proposal.
In a tweet yesterday, LUNC Burn, a Twitter account dedicated to tracking LUNC burn activities, disclosed that the 1.2% tax proposal for LUNC will be available for voting on September 10 and, if approved, activated around September 20.
“This is the official date’s for the proposal to activate the 1.2% tax burn. The prop will be on or before 10th September, and the activation date once it passes will be on or around 20th September,” the LUNC burn tracker wrote.
This is the official date’s for the proposal to activate the 1.2% tax burn. The prop will be on or before 10th September and the activation date once it passes will be on or around 20th September 🔥🚀🌝 #lunc #lunaclassic pic.twitter.com/yOwgpmaiqK
— LUNC Burn (@LunaBurn_13) September 6, 2022
Notably, statements from LUNA Burn confirm sentiments from TerraRebel, a Terra Classic community group. In a tweet yesterday, the group informed users to expect the tax proposal to be available for voting within a week.
Expect the 1.2% parameter change burn proposal to be released for voting on within a week or so depending on work loads and final checks by #TerraRebels
We need to prepare for potential altitude sickness risks. 😉
— TerraRebel (@RexYellerBelly) September 6, 2022
It bears mentioning that LUNC has surged in response to the idea of the tax proposal to reduce the excess supply of LUNC tokens. As reported by The Crypto Basic, the renewed demand saw KuCoin run out of the token as it surged by over 65%. Additionally, the trading volume on Binance peaked at over $1 billion.
If approved, the 1.2% tax proposal will see users pay a 1.2% fee on all on-chain transactions, including wallet interactions and smart contracts. This fee is then sent to the Terra-provided burn wallet to reduce the LUNC supply. Notably, the parameter change can not be applied to exchanges without the support of exchanges. Consequently, this has been a cause for concern for some users as most LUNC transactions occur on central exchanges.
However, two exchanges, including MEXC Global, have already supported the proposal. Notably, MEXC, as part of its two-week event to show support for the proposal, has already burned about 48 million LUNC in trading fees. While the proposal makes LUNC transactions more expensive, it appears that Terra Classic LUNAtics have qualms about paying the price.
The idea of taxing LUNC transactions first came in June. Still, a more comprehensive proposal by community member Edward Kim earlier this month has gained traction. Notably, LUNC DAO, a LUNC community validator, recently disclosed that LUNC community members had opened lines of communication with Terra founder Do Kwon.
Rebels are speaking to Do Kwon ⚡️ pic.twitter.com/0h0GF0LwAo
— 🔥🙏 𝕃𝕌ℕℂ 𝔻𝔸𝕆 🙏🔥 (@LUNCDAO) September 6, 2022
LUNC is trading at the $0.0003508 price point, up 124.39% in the last seven days.