The long-awaited LUNC 1.2% tax burn proposal is now live after months of waiting. The new development was announced by reXx, a member of TerraRebel.
It is worth noting that henceforth, the users will be charged a 1.2% tax on all on-chain transactions, with the collected fees sent to the Terra burn wallet to bring down the excess LUNC supply.
Tax Burn Is To Reduce The LUNC Total Supply
The idea of this is to reduce the supply in circulation to a sizable amount. It was previously said that the proposal is to a total of 6.9 trillion to about 40 billion and it is calculated to take a decade at a 1.2% tax burn.
If this is successfully done, the LUNC price is said to hit $1 in the space of seven years while going by this same hypothetical market cap and a 10 billion supply on The Coin Perspective reveals that the asset quadruples this price projection and could clinch the $4 price point.
The LUNC Burn recently highlighted on its Twitter handle, that about 4.1 billion LUNC had been burned without the parameter change ahead of its public launch.
Exchanges Are Already Adding Supporting The Proposal
It is worth noting that the proposal has been gaining a lot of support ahead of its launch as over 10 exchanges are already supporting it.
Exchanges like Binance, KuCoin, MEXC Global, Lbank, Huobi, Bitrue, Gate.io, CoinInn, Kraken, and CryptoCom have recently supported the proposal and out of these, only Kucoin, MEXC Global, and CoinInn will support burns on LUNC trading.
Recently, MEXC Global, one of the supporting exchanges, concluded its burning event for the spot trading of the LUNC pairs with over 466 million LUNC tokens burnt.
At the Writer’s time, LUNC is trading at the $0.0003036 price point, 0.55% lower than in the last 24 hours.