The Terra Classic community has voted to approve two critical proposals that will affect the burn rate and funding for the community pool in the coming days. While the community has officially approved the two-part proposals, core developer Edward Kim warned of their impact on the community pool. The move comes amid ongoing efforts to increase the LUNC burn rate.
Two-part proposal approved by the Terra Classic community
The proposal aims to stop the re-minting of Terra Classic (LUNC) tokens from burns by setting the seigniorage reward policy to zero and increasing the gas cost by 5x to fund the common pool. The proposal has been split into two parts to implement the change in the Terra Classic chain.
Proposal 11242 will set the seigniorage reward policy to zero, effectively stopping LUNC from hitting burns again. Currently, the 10% LUNC is re-beaten from the 0.2% burn tax after each time slot and added to the common pool.
The proposal has received 95.98% votes from the community. In addition, 51 validators voted “yes” and 2 validators voted “no” on the proposal. Top validators such as Allnodes, Orion.Money, Classy’s Sphere, and others have approved the proposal.
Meanwhile, proposal 11243 increases gas costs by 5 times and 50% of transaction costs go to the developer funding community pool.
The proposal received 90% of the votes in favor and 11% of the votes against. In addition, 42 validators voted “yes” and 7 validators voted “no” on the proposal. While validators approved the proposal, new details from Terra Classic core developer Edward Kim led validators to change their vote.
Terra Classic core developer Edward Kim warns the community that the proposals could have a serious impact on the funding of the community pool as the data shared in the proposal has a miscalculation. So it shows that additional fees are distributed. However, a solution could later ensure that much less goes to the communal pool.
Also Read: Terra Classic Community Burns Over 12 Million LUNC, Price Rises
LUNC Price Awaits Rally To $0.00020
The price of Terra Classic (LUNC) is down almost 2% in the past 24 hours with the price currently trading at $0.0001633. The 24-hour low and high are $0.0001623 and $0.0001689, respectively.
According to CoinGape analysis, a possible $0.000185 break will bolster buying momentum and push prices 40% higher to reach $0.000285.
Also Read: Lead Developer Confirms Terra Classic (LUNC) Compatibility with Interchain Station
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