Terra trying to rebirth the ecosystem from its ashes Luna Classic his community voted to lower the LUNC tax-burn rate from 1.2% to 0.2%; this change means that it may take 29 years for 10 billion tokens to be withdrawn from circulation.
With the acceptance of Proposal 5234, the Terra LUNA Classic community has decided to reduce the LUNC tax burn for on-chain transactions from 1.2% to 0.2%.
Tax burning was introduced as a built-in mechanism to support the crypto price by destroying 10 billion LUNC from the total supply. The change is expected to go into effect at 12:50 PM (UTC) on October 19.
LUNC Tax Burn Mechanism is Changing
LUNC tax burning The decision to change the ratio received an enthusiastic response from the Terra LUNA Classic community. Many appreciated the efforts behind the proposal.
Twitter user Akujiro emphasized that community members highlight this. Akujiro underlined that the proposal has 82% of votes and includes participation from crypto exchange KuCoin for the first time.
“We are decentralized, I encourage everyone to start discussions and take action,” Akujiro said.
Proposal 5234 just passed! 🥳❤️🔥🦾
This was a community proposal brought forward by community members which passed governance!✅ @kucoincom voted for the first time
✅ Had an 82% vote rateWe are decentralized, I encourage everyone to start discussions and take action!❤️🔥
— Akujiro (@Akujiro2) October 17, 2022
Meanwhile, Twitter user 4lex_4sh4w_TR also highlighted “great community engagement”, citing the 83% engagement rate. This milestone was achieved even though roughly a quarter of the approvers did not vote. According to the figures, 92 percent of those who did not abstain voted yes.
Koinfinans.com As we previously reported, in response to the community initiative’s transition, crypto exchange Binance has announced that it will support updates. Deposit and withdrawal fees will change once the LUNC tax burning mechanism kicks in.
It Takes Nearly 30 Years to Burn 10 Billion LUNCs
With the lower burn rate, the overall target of the LUNC tax burning mechanism is now scheduled to take much longer. According to an estimate from LUNC Burner, with a LUNC tax burn rate of 0.2%, Terra LUNA Classic will reach its goal of destroying 10 billion LUNCs in approximately 28 years and 9 months.
The data on the website detailed that roughly 22,428 million, or about 0.325756% of LUNC’s total supply, has been burned to date. Total supply is calculated as on-chain supply minus the amount of LUNC burned. According to CoinGecko, it currently stands at 6,907,072,876,045.
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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.