Terra Classic The community approved a proposal to reorganize the LUNC burning tax. More precisely, instead of the burning tax rate, the reward distribution of burning will be changed.
Meanwhile, the overall crypto market remained under selling pressure ahead of the $9.4 billion crypto option expiry and LUNC The price is pushing for further recovery.
Terra Luna Classic Burning Tax Proposal Accepted
Proposal 12098 “Changing the Reward Distribution of the Fuel Tax” was accepted by the Terra Classic community. This changes the distribution of the burn tax to the community pool and the Oracle pool.
Specifically, the proposal does not change the burn tax rate or the amount burned, it just changes the distribution of the burn tax to the divination pool instead of rewards. The proposal received 70% votes in favor, with 37 approvers supporting the proposal.
“The technical details of this issue may be a bit complicated. I’ll try to simplify some of them at the expense of a little less precision in the definitions and numbers. This outline was released a few weeks ago along with more details about block reward holder rewards. I removed these parts because recommended rewards will be removed in SDK 0.47,” developer StrathCole said.
In Terra Classic, the burn tax is set at 0.5%. 80% of this amount is allocated to burning and 20% is allocated to the Community Pool (10%) and rewards (10%). After the bid, 20% will be distributed 10% to the Community Pool and 10% to the Oracle pool.
Instead of instant block rewards, the portion from the burn tax will go to long-term staking rewards (Oracle). However, this will result in an APR reduction of approximately ~0.5% depending on volumes in the chain.
LUNC and USTC Lost Value
LUNC price has fallen 8% in the last 24 hours along with the sell-off in the general market and is currently trading at $0.0001027. The 24-hour lowest and highest prices were $0.0001014 and $0.0001115 respectively. Additionally, trading volume has decreased slightly over the past 24 hours, indicating decreased interest among traders.
Meanwhile, USTC price also dropped over 8% and the price changed hands at $0.01842. The price increased by 20% last week. The 24-hour low and high prices were $0.01814 and $0.01997 respectively.
