Terra Luna Classic Proposes LUNC Burn Tax Overhaul, Price Volatility Expected

• Terra Luna Classic plans a major revision of LUNC burn tax distribution to improve staking rewards.
• Initial price volatility expected as the community and markets respond to tax distribution changes.

Following a previous update by CNF, the Terra Luna Classic community has shown robust support for Genuine Labs’ proposal, allocating over 256 million LUNC to it. This endorsement underlines the community’s readiness to adopt strategic changes aimed at enhancing the network’s value and functionality.

Strategic Redistribution Proposal

Recent updates from Coin Market Cap indicate that the community is now voting on a significant proposal to revise the LUNC burn tax distribution. This initiative, emerging from proposal 12098 approved earlier in April, requires support from community members and validators to proceed.

Developer Frag has proposed changes (proposal 12114) that would adjust the current 0.5% burn tax distribution from 80% for burning and 20% for community and rewards to 10% for the Community Pool and 10% to the Oracle Pool.

Frag’s proposal outlines an extensive plan that involves:

• Revising the distribution logic.
• Adjusting split parameters and handling protocols.
• Extensive testing phases to ensure the proposed changes are implemented correctly.

This project, expected to cost $3600 in LUNC and take 56 hours, aims for completion by mid-July. The redistribution is designed to slightly decrease APR by about 0.5%, which should redirect more funds towards long-term staking rewards and enhance support for validators. Currently, the proposal enjoys a remarkable 99.97% approval rate, indicating strong community support.

Market Dynamics and Price Fluctuations

Blockchain expert Collin Brown noted in his tweet that the development targets completion by mid-July, anticipating initial price volatility. Despite market selloffs, trading volumes for LUNC and USTC futures have increased, suggesting active market responses to these changes.

Terra Luna Classic proposes adjustments to the LUNC burn tax distribution, possibly leading to further price declines. The plan allocates 10% of the tax to the Oracle pool, enhancing staking. Developers target completion by mid-July, foreseeing initial price volatility. Seeking… pic.twitter.com/vtowCJCvKk

— Collin Brown (@CollinBrownXRP) June 11, 2024

As of the latest data from Coin Market Cap, Terra Classic (LUNC) is currently priced at $0.0001005, experiencing a decline of 2.89% over the past day and 15.42% over the past week. See the price chart below.