The outcome of Proposal 11397 confirmed what is a top priority for the community-driven Terra Classic (LUNC) project. Proposal 11397 aimed at increasing the LUNC on-chain tax burn rate from the current 0.2% to 0.8%.
Voting on the proposal which was submitted last week ended on Monday per an update from Rex Harrison, a senior member of the independent Terra Classic development group — TerraCVita.
The majority of the LUNC community abstained from casting a vote on the proposal while the number of members (36.888%) that voted ‘No’ outnumbered the total ‘Yes’ votes (11.98%). Proposal 11397, therefore, stands rejected as it failed to reach the pass quorum.
Reacting to the development, Harrison reiterated that the best way to revitalize LUNC is to build sufficient utilities and use cases for the token.
“With the burn tax increase proposal 11397 rejected and not even making quorum this sends an overwhelming message that Terra Classic supports a stable political environment where the preferred approach to bringing value to LUNC is building and philanthropic / utility burning,” he wrote.
This syncs with the viewpoints shared by Edward Kim, a lead member of the LUNC Joint L1 Task Force. According to Kim, LUNC will remain a meme coin until solid utilities are built around it.
Hence, his decision to develop an app-chain utility for LUNC connected via Inter-Blockchain Communication. This Machine Learning and Artificial Intelligence based application would be designed such that it can help fund LUNC development, help reduce the supply of LUNC and UST as well as increase the utilization of LUNC, Kim revealed.
TerraCVita and Tobias Andersen attested to this today as seen on the tweet below.
We can confirm that we are discussing with @edk208 and @ZaradarBH regards @_Terraport_ being utilised to assist the launch of the ML project and bring even greater burn volume through the DEX. @TerracVita helping build our future ♥️ https://t.co/GW5lSJVq7V
— TerraCVita (@TerracVita) March 21, 2023
To further introduce solid utility for LUNC and a stable political environment for the project, TerraCVita is set to launch Terraport. Terraport is a Terra Classic layer-2 decentralized finance ecosystem (DEX) that would not only support massive LUNC burning but attract new investors.
Earlier today, the team behind Terraport confirmed March 31 as the launch date for the promising project. Recall that TerraCVita had earlier shared the Terraport launch roadmap.
On the 31st March @_Terraport_ launches.
Rejection of this proposal means @_Terraport_ #DEX can compete with other DEX's commission rates.
Do $LUNC proud and get as much volume in @_Terraport_ as we can. This could be massive for #LUNC and burn billions.#Finance #crypto https://t.co/6iXE5DLqbH
— TerraCVita (@TerracVita) March 20, 2023
Meanwhile, Rex Harrison previously detailed why the Terra Classic community needs Terraport and the project’s ultimate goal. To elaborate, he noted today that “the DEX [Terraport] will charge fees circa 0.5%, including burn tax where applicable.”
He added that over 44% of these fees will burn LUNC with 56% going into liquidity pools, staking, and burning TERRA — Terraport’s native token.
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