The Terra Classic community unanimously approved a major update proposal to change the burn tax distribution. The v3.1.3 update will introduce Oracle Split logic, redirecting community pool rewards from the burn tax to the Oracle Pool (OP). At the same time, terrad client will convert short-term rewards into long-term rewards. These changes have the potential to drive a significant increase in staking and LUNC prices.
BURNING TAX DISTRIBUTION IS CHANGING
The v3.1.3 update proposal, presented by Fragwuerdig, the popular developer of Terra Classic, 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 chain will stop at block height 19108180 on July 29, and important developments are expected regarding TFL's token burns before this date.
UNANIMOUSLY ACCEPTED
The update proposal received 99.99% "Yes" votes. This shows great support among validators and delegates. Among the 35 validators who participated, names such as Allnodes, Interstellar Lounge, and Stakely supported the proposal. The current incineration tax is 0.5%, 80% for incineration and 20% will be distributed to the Community and Oracle repositories.
POTENTIAL FOR INCREASE IN PRICES
Although LUNC and USTC tokens have rebounded after the BtcTurk hack, they are still trading below their year-to-date highs. Terra Classic Burn tax and Tax2Gas update may increase prices further.
CONCLUSION
🔥🔥🔥 This important update is seen as a critical step for the long-term success of the Terra Classic community. Investors hope these changes will have positive effects on the market‼️
