Should LUNC tax be reduced from 1.2% to 0.2%?

Should LUNC tax be reduced from 1.2% to 0.2%?

The Terra Classic [LUNC] community has been embroiled in debate since one member proposed reducing the 1.2% tax burn. Akujiro, a member of the LUNC community, initially asked LUNC to reduce the burning tax to 0.2%.

In addition to the reduction, he suggested that LUNC should add 10% of tax profits to the general fund. He recalled that several crypto exchanges, including Binance, have confirmed their support for burning.

Terra Classic price prediction for 2022-2023

However, the bones of the controversy changed when Edward Kim, a well-known member of the community, publicly shared his thoughts on the incident in question.

LUNC tax reduction or not

Sharing on his Twitter page, Kim noted that he had carefully considered the pros and cons of the current tariffs. She also noted that she considered the proposed option.

According to him, the tax reduction could lead to an increase in the volume of LUNC on the chain. Also, it can help attract new delegations through the help of validators. In his Medium post, Kim said:

"The increase in volume would be confused with the unlocking of a new on-chain utility and therefore may not be accurately measured at the time of this proposal."

The blockchain expert noted that the proponents of the reduction may be doing so due to their bias. On the other hand, Kim said that the 1.2% tax rate was also maintained because some members of the community felt it was too early to change course in the project.

He also mentioned that some members felt that the community did not have enough data to take that step. To make matters worse, Kim concluded that she was in favor of cutting. He also called on other members of the LUNC community to take his stand.

Read also: Terra Classic burning 1.2% tax can be a driver of price increases or a problem

News on social networks and LUNC prices?

In the context of development, it seems that LUNC isn't getting the attention it could have wished for. According to Santiment, LUNC's social media volume has dropped significantly, with a value of 50 as of October 15.

For its price, there doesn't appear to be a breakout. The on-chain crypto tool shows that LUNC has lost 2.76% of its value and is trading at $0.000271 on Oct. 15. However, press time has seen a drop of 1 another 8% and it stands at $0.000268.

Source: Emotions

As for LUNC's trading volume, no decline has stopped. As of October 15, the volume is $287.59 million, down 35% from October 14.

Source: Emotions

In conclusion, the LUNC community seems divided on this proposal. Comments on Kim's Twitter post suggest that while some think the reduction is absurd, others say the 0.2% level is too small and needs to be increased.




Oct 16, 2022

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