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🌖 Terra Luna Classic Overhauls LUNC Burn Tax with key move
The Terra Luna Classic ($LUNC ) is seen to be undergoing notable changes following an approval to revise the cryptocurrency’s burn tax. The changes include a favorable vote for an oracle pool distribution from the Terra Luna Classic community.
Terra Luna Classic Burn Tax Proposal Approved
Recent reports reveal the Terra Luna Classic community successfully passed Proposal 12098 titled “Changing the Reward Share Distribution of the Burn Tax.” The proposal aims to alter the burn tax distribution to the community and Oracle pool. However, it is important to note that the proposal does not alter the burn tax rate, nor the amount sent to burn.
At the moment, the proposal has gained 70% favorable votes, with 37 validators in support of the proposal. The essence of the proposal lies in its redistribution mechanism, which diverts a portion of the burn tax revenue away from immediate rewards and into the long-term staking incentives facilitated by the Oracle pool.
According to recent information, #TerraClassic operates with a burn tax set at 0.5%. Under the distribution model, 80% of this tax is directed towards burn, with the remaining 20% shared evenly between the Community Pool and block rewards.
However, with the approval of Proposal 12098, this distribution structure changes. Now, the 20% share designated for rewards will be divided equally between the Community Pool and the Oracle Pool.
This adjustment demonstrates the resilience of the #TerraLunaClassic ecosystem. The community aims to strengthen long-term staking incentives and increase network participation and stability.
One notable consequence of the revised distribution model is its potential impact on the Annual Percentage Rate (APR) for staking participants. With changes in the allocation of rewards towards the #Oracle pool, the APR may experience a marginal decrease of approximately 0.5%. This decrease is, however, dependent upon on-chain volumes.
