The 5234 proposal is currently under discussion in the Terra Classic community after Binance CEO “CZ” recommends lower costs to increase Terra Classic (LUNC) burn speed. Community member Akujiro suggests lowering the burn tax to 0.2% and setting 10% to fund Terra Classic’s ecosystem infrastructure and contributors. The group behind the 1.2% tax-burning and Terra Classic revival roadmap supports proposal 5234.
Terra Rebels support proposal 5234 to cut tax credit of 1.2%
Terra Rebels, the volunteer developer group behind the 1.2% tax fire, is currently asking the Terra Classic community’s opinion on the proposal. Meanwhile, Terra Rebels’ lead developers Edward Kim and Alex Foreshaw have expressed support for the 5234 proposal.
Edward Kim, co-author of the 1.2% tax-burning proposal, in a tweet on October 15, it emerged that he voted “yes” to the proposal after a detailed analysis. In a Medium article, he explained the impact of lowering the tax to 0.2% and allocating 10% of the money to the community pool for Terra Classic chain developments.
He believes the community pool can be used for emergency funds, attracting DApps and projects back to the Terra Classic chain, and repaying developers to improve the chain.
Currently, the load parameter burns 100% after each epoch, which is 7 days for LUNC. At the end of each era, all burned LUNC are re-beaten and immediately burned. It means that setting 0.9 and 90% burn through the new proposal will actually function as a 100% burn for the week and do 10% of the burn again.
In addition, he uses machine learning optimization to help his decision to reduce the tax burden to 0.2%. He thinks some projects or DApps have definitely moved away from LUNC because of the on-chain load, but most have supported the on-chain load. It is better to keep exploring as there is not enough data to support a 0.2% tax which increases the trading volume.
While, Alex Foreshaw accidentally voted “No” to the tax change proposal, before revealing that a lower tax rate combined with a CosmWasm upgrade will improve liquidity in the chain. It also makes DApps build on Terra Classic and recover lost LUNC trading volumes.
Meanwhile, validators and other members appear to support the proposal based on Binance CEO “CZ” recommendation to cut fees.
LUNC Price and Burn
The price of Terra Classic increased mainly after the 1.2% tax burn, strike and other board activities. Binance has also been instrumental in increasing the burn speed with its LUNC burn trading fee decision.
At the time of writing, LUNC price is trading at $0.00027, down more than 3% in the past 24 hours. Trading volume is down 50% due to the market-wide unfavorable sentiment from traders.
So far, more than 19 billion LUNC tokens have been burned in total. Also, the tax burn accounts for 6 billion LUNC, while the fire address accounts for 13 billion LUNC tokens.
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This post Should Terra Classic (LUNC) be reduced by 1.2% tax burn? This is what the community thinks
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