Terra classic (LUNC)LUNC price is struggling to surpass the $0.0251 level recently and is not seeing any signs of a bull run. The current downtrend of Terra Classic has been going on since September, which resulted in a massive sell-off.
Although there has been a slight bull run lately, the bulls have not been able to hold on to it for long, which has created a bearish bias.
On the other hand, on October 19, the Terra community approved the 5234 proposal that would cut the 1.2% tax burn to 0.2%. The proposal also claims that 10% of tax revenue will go towards developing the network.
Mobility in Terra Classic’s (LUNC) Ten-cahin Volume
In a recent development, the 100% increase in Terra Classic’s on-chain volume has been confirmed by Terra phenomenon Classy Crypto.
The .2% $LUNC burn tax change has already increased volume on-chain by 2x on Day 1.
Retweet to spread the word! 🔥🔥🔥 pic.twitter.com/eWiWC4wGrH
— Classy 👾 (@ClassyCrypto_) October 20, 2022
The main agenda behind reducing the 1.2% tax burn to 0.2% was to generate some positive developments within the Terra network. In fact, the Terra community believed that the change would increase the trading volume of LUNC and USTC.
Koinfinans.com As we reported earlier, on-chain volume dropped after the 1.2% tax burning process went live in September. However, Duncan Day, who suggested the reduction in tax burning, claims that at least seven days should be waited for the final result. doing.
It is important to note that the tax cut proposal aims to see an increase in volume as well as an effective burn. However, there is no appreciable effect on the combustion mechanism. For example, on October 18, when the tax burn rate was 1.2%, there was a burn of 190 million LUNC.
However, only 150 million LUNC were burned on October 19 after the proposal was implemented. This bearish pattern was shared on October 20, which saw only 49 million LUNC burns, according to LUNC Burner data.
As Duncan Day claims, the final result of the Terra Classic volume increase will be known in seven days.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.