Terra Classic Community Reduces Tax Burn To 0.2%
Contributors to the Terra Classic network have cut the so-called burn tax charged on all Terra Classic token (LUNC) transactions.
Contributors reduced the tax rate from 1.2% to 0.2% since the earlier rate was thought to cause a decline in network activity.
The new rates went into effect today at 12:50 p.m. UTC after the community’s approval of governance Proposal 5234, which reduced the number of tokens burnt with each transaction. Binance also announced this adjustment:
Last month, the Terra Classic governance council voted to levy a 1.2% tax on each LUNC transaction and trash the proceeds in a bid to reduce LUNC supply, believing that fewer tokens in circulation would enhance value.
While the 1.2% burn fee was intended to strengthen LUNC’s tokenomics, it actually discouraged usage and reduced on-chain activity. According to estimations from key contributors, the tax reduced LUNC’s on-chain transaction volume by 91.67%.
At the time of writing, LUNC is trading at $0.00025.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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Terra Classic Community Reduces Tax Burn To 0.2%
Contributors to the Terra Classic network have cut the so-called burn tax charged on all Terra Classic token (LUNC) transactions.
Contributors reduced the tax rate from 1.2% to 0.2% since the earlier rate was thought to cause a decline in network activity.
The new rates went into effect today at 12:50 p.m. UTC after the community’s approval of governance Proposal 5234, which reduced the number of tokens burnt with each transaction. Binance also announced this adjustment:
Last month, the Terra Classic governance council voted to levy a 1.2% tax on each LUNC transaction and trash the proceeds in a bid to reduce LUNC supply, believing that fewer tokens in circulation would enhance value.
While the 1.2% burn fee was intended to strengthen LUNC’s tokenomics, it actually discouraged usage and reduced on-chain activity. According to estimations from key contributors, the tax reduced LUNC’s on-chain transaction volume by 91.67%.
At the time of writing, LUNC is trading at $0.00025.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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