The Terra Classic community has unanimously approved a major update proposal, which involves changing the burn tax distribution and introducing Oracle Split logic. With the new update, community pool rewards obtained from the burn tax will be directed to the Oracle Pool (OP) and the terrad client will convert short-term rewards into long-term rewards. These changes carry the potential for a significant increase in staking and LUNC prices.

The v3.1.3 update proposal submitted by Fragwuerdig received great support and passed the passage threshold, according to the voting results made through the Station wallet. The update includes fixing the parameter keys table, adjusting Oracle Split logic, and using wasmvm v1.5.2 to prevent memory leaks. The Terra Classic chain will stop at block height 19108180 on July 29, and important developments are expected regarding TFL's token burns before this date.

The update proposal received overwhelming support among validators and delegates, receiving 99.99% “Yes” votes. Among 35 validators, names such as Allnodes, Interstellar Lounge, and Stakely supported the proposal. The current incineration tax is set at 0.5%, 80% of this tax will be reserved for incineration, while 20% will be distributed to the Community and Oracle pools.

Although LUNC and USTC tokens are recovering from the BtcTurk hack, they are still trading below their year-to-date highs. Terra Classic's burn tax and Tax2Gas update may have the potential to drive further increases in the prices of these tokens.

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