Terra Luna Classic (LUNC) Burn Tax Change Proposal Officially Passed

Terra Luna Classic proposal to revise burn tax distribution is passed by LUNC community. This will bring a number of pros and cons for the Terra Classic community.

HIGHLIGHTS

Terra Luna Classic community passed proposal to implement a revised LUNC burn tax distribution.

The developer will complete burn tax distribution change related to the oracle pool split as set in proposal 12098 by mid-July.

The proposal received 98.04% "Yes" votes.

The Terra Luna Classic community has passed a key proposal to implement a revised LUNC burn tax distribution. This pay-per-job (PPJ) proposal gets over 98% support from community members and validators on moving ahead with changes as per proposal 12098 passed earlier by the Terra Classic community in previous months. It is expected to be implemented in mid-July.

Terra Classic Community To Revise Burn Tax Distribution

A pay-per-job proposal 12114 by popular developer Till Z., known as Fragwuerdig, was passed by the Terra Luna Classic community. The developer has started working to implement the burn tax distribution change related to the oracle pool split as set in proposal 12098.

The proposal received 98.04% “Yes” votes, which indicates the proposal saw major support from validators. Among 47 validators who participated in the governance voting, top validators such as Allnodes, Interstellar Lounge, JESUSisLORD, Stakely, HappyCattyCrypto support the proposal.

As earlier reported, Terra Classic has a burn tax set to 0.5%. Out of this, 80% is for burn and 20% is distributed as — 10% to Community Pool and 10% to rewards. As per 12098, the 20% will be distributed as 10% to Community Pool and 10% to Oracle pool.

This will impact immediate block rewards for LUNC users. Instead, the portion from the burn tax would go into long-term staking rewards (Oracle) to improve LUNC staking. In addition, it will help validators, but decrease the APR by about ~0.5% depending upon on-chain volumes.