The Terra Luna Classic community has approved the long-awaited Tax2Gas proposal by core developer Genuine Labs, causing the LUNC price to rise by 5%. This major upgrade will be implemented on the Terra Luna Classic chain, simplifying the handling and calculation of taxes.
The approval of this proposal is expected to have a significant impact on the future of the chain and LUNC’s price.
Proposal 12120: Tax2Gas Implementation Gains Approval
Proposal 12120, “Genuine Labs’s Tax2Gas Implementation,” has passed the approval threshold, signaling that validators and delegators support implementing Tax2Gas using Genuine Labs’ approach. This will be followed by another proposal from the core developer to complete the upgrade.
The proposal received over 65% of votes in favor, while 10% voted “No” and 24% abstained. Although most validators supported the proposal, the top validator, Allnodes, has not yet decided due to the proposal’s significant impact on the burn and on-chain tax mechanism.
Genuine Labs’ approach faced considerable opposition from some Terra Luna Classic community members. This resistance arose after popular developer StrathCole raised concerns about the initial code review by Genuine Labs. As a result, the developer sought the community’s input to determine whether the tax change should proceed as proposed.
Impact of Tax2Gas on LUNC and Market Trends
The Tax2Gas upgrade is set to be transformative for Terra Luna Classic as it will address issues such as the need for contract developers to manually calculate burn taxes. Currently, clients or decentralized apps (dApps) must handle tax calculations themselves, as the simulation endpoint only provides gas estimates. This upgrade aims to simplify the process significantly.
In the last 24 hours, LUNC’s price has risen by 6% amid a broader crypto market recovery, trading at $0.000071. The price reached a low of $0.00006679 and a high of $0.00007173 during this period. However, trading volume has decreased by 11%, suggesting a decline in trader interest.
The Terra Luna Classic community is hopeful that the Tax2Gas upgrade will improve how the network functions and increases the burn rate of tokens. This could potentially boost LUNC’s price to $1 over time.
In addition, the price of USTC has increased by more than 4%, now trading at $0.01561, with a modest 4% rise in trading volume over the past 24 hours. Despite these movements, market uncertainty persists.
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