Terra Classic proposal 5234, the proposal aimed at reducing LUNC burn tax from 1.2% to 0.2% has been passed via a governance vote.
Following the implementation of the approved 1.2% LUNC burn tax by various crypto exchanges, a need to reduce the tax started to arise when it was noticed that the tax is affecting Terra Classic’s daily volume.
Read Also: Terra Classic Core Developer States Procedure for the Proposed Grants Program for LUNC Revival
Terra Classic (LUNC) Tax to Be Reduced from 1.2% to 0.2%
As recently shared by a Terra Classic community member known on Twitter as Akujiro, the proposal targeted at reducing the LUNC burn tax from 1.2% to 0.2% has been approved. It should be noted that Akujiro is one of the authors of this proposal.
According to the report, proposal 5234 had an 82% vote rate and the top crypto exchange KuCoin joined the voting process for the first time, indicating its determination to support LUNC recovery.
“Proposal 5234 just passed! This was a community proposal brought forward by community members which passed governance!”
Proposal 5234 just passed! 🥳❤️🔥🦾
This was a community proposal brought forward by community members which passed governance!✅ @kucoincom voted for the first time
✅ Had an 82% vote rateWe are decentralized, I encourage everyone to start discussions and take action!❤️🔥
— Akujiro (@Akujiro2) October 17, 2022
Sharing details on how the vote went, Terra Classic developer Alex Forshaw said the proposal attracted around 83% community participation, even without 58 of the network’s 85 validators. Alex also revealed that 92% of non-abstainers voted in favor of the proposal.
Read Also: New Way to Effectively Burn Terra Classic (LUNC) Supply Introduced: Details
The developer sees the proposal as a means to get liquidity back on-chain for LUNC to open the door for builders and utilities.
Amazing community engagement here
-83% participation, even w/ 58/85 validators (25% of total) not voting
-92% of non-abstainers voting YesTime to get liquidity back on-chain and start BUIDLing.
The nice thing about crypto politics is how aligned our interests are at EOD! pic.twitter.com/wAgC5wEmQm
— 4lex_4sh4w_TR (@4lex_4sh4w_TR) October 17, 2022
As explained in a blog post by Edward Kim, the author of the 1.2% LUNC tax burn proposal, the newly passed proposal is in two phases. The first is to reduce the LUNC burn tax from 1.2% to 0.2%, while the second is to take 10% of the seigniorage collected to the community pool at the end of the epoch.
It’s worth noting that the new tax parameter will become effective with the new epoch, which is estimated to play out on October 19 at about 12:50 pm.
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