Nov 10, 2024
6thTrade
Terra Luna Classic (LUNC) has shown resilience with a 13% rise over the past month, maintaining its market cap above $500 million. This boost comes as developers announced an overhaul of LUNC’s tax mechanism, scrapping the previous “Tax2Gas” system in favor of a more streamlined approach aimed at enhancing compatibility for decentralized applications (dApps).
Terra Luna Classic’s New Tax Model: A Move Toward Greater Flexibility
Web3 development firm Orbit Labs, now overseeing Terra Luna Classic’s infrastructure, has implemented the “Reverse Charge” tax proposal, which was recently approved by the LUNC community as Proposal
#12143. This shift means that transaction taxes will no longer require an extra fee from the sender. Instead, the simplified tax mechanism will operate with backward compatibility, reducing friction for developers and enhancing dApp compatibility with other blockchains.
According to Orbit Labs’ social media updates, the team is actively working on a Pay-per-Job (PPJ) basis to finalize this system. The development process includes interchain testing on SDK 0.47 and a thorough review of the community-approved code. Orbit Labs allocated $2,500 for this project, aiming to refine Terra Luna Classic’s infrastructure.
The Path to a $1 Price Target Remains Challenging
Despite these technical advancements, LUNC’s price action has lagged, with only a slight 2.2% increase in recent days. While Terra Luna Classic’s market cap remains robust, fierce competition in the altcoin space has kept LUNC below the top 150 cryptocurrencies by market capitalization.
On the technical front, LUNC’s daily price chart shows more bearish indicators than bullish ones. The token trades below the critical $0.0000950 support level, and the Stochastic Relative Strength Index (StochRSI) signals an overbought condition, with readings between 86 and 80. Additionally, the Chaikin Money Flow (CMF) remains below zero, indicating that large investors are offloading their LUNC holdings rather than accumulating—a sign that the $1 price target is likely out of reach in the short term.
Still, Terra Luna Classic’s new tax structure could positively impact its price trajectory, especially as it removes taxes for recipients on LUNC transfers. This update is expected to provide smoother, tax-efficient transactions, which could bolster user adoption and investor interest over time.
A New Era of Transparency for Terra Luna Classic
Unlike previous anonymous developers on the LUNC chain, Orbit Labs’ team has undergone Know Your Customer (KYC) verification through SolidProof.io. While some community members remain supportive of the previous “Tax2Gas” system, citing its tax and burn contributions, others believe the new model will better support Terra Luna Classic’s growth and utility.
This tax system overhaul marks a critical development in Terra Luna Classic’s journey, as the project continues to seek ways to optimize usability and adoption.
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