Tuesday, February 27, 2024
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Terra Classic Developer Submits Proposal To Restore 295 Million LUNC in Wrong 1.2% Taxes

Edward Kim, the Terra Grants Foundation team lead and a top developer of the Terra Classic project has made a move toward the reimbursement of the millions of LUNC tokens in lost fees.

Per an update, Kim rolled out a Terra Classic community spend proposal on Sunday seeking to refund a total of 295 million LUNC to several users who were inaccurately taxed following the implementation of the 1.2% LUNC tax burn. 

As part of the programs to reduce the hyperinflated supply of LUNC, the 1.2% LUNC tax burn was activated on the Terra Classic network on September 12. Notably, at the initial stage of this initiative, some user transactions did not go through due to the problem of ‘gas computation straddling’ but taxes were levied nonetheless. 

“We are requesting the total amount of incorrect taxes charged be reimbursed via a community pool spend to the users that lost funds during this time; the total reimbursement is 295M LUNC,” Edward Kim wrote. The code to process the reimbursements has been written, he further disclosed. 

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According to the reimbursement of lost fees proposal from Kim, the period in consideration is September 21 to September 28, 2022. The proposal added that Strathcole, another core member of the LUNC development team, took time to identify the transactions that failed during this period. 

It was noted that 9 wallets lost over 5 million LUNC in wrong taxes, 2,214 wallets lost between 5 million and 10 LUNC while several hundred wallets lost below 10 LUNC. 

More so, Kim pointed out that the majority of the affected wallets belong to centralized exchanges including Coinspot and Crypto.com. “Simply sending reimbursements to these wallets is not advised, and thus we will make reasonable efforts to contact the CEXs to figure out the best way to reimburse them. If these efforts fail, we will simply return these funds to the community pool,” he wrote.

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Contained in the proposal is the comprehensive procedure for the reimbursement exercise if the proposal passes governance voting. Looking at the responses from several members of the community including Classy, a popular validator node owner, there is every likelihood that the proposal would pass. But Classy showed concern regarding the funding of the community pool after the deduction of such an amount.

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Ndianabasi Tom
Ndianabasi Tom
Ndianabasi Tom joined the crypto and blockchain industry in late 2018. He is an all-rounded crypto journalist and content writer. At TimesTabloid, he covers the industry's latest news, developments, and other educational content. He is a graduate of Petroleum Engineering.

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