After seeing the effect of the LUNC 1.2% tax proposal on the on-chain volume, the LUNC proponents brought up the idea of proposal 5234. It is worth noting that the Terra Classic community passed proposal 5234 on Monday after a week of voting and debates.
The new development was shared by the proposer, a community member known as Akujiro.
Also, the Terra classic developer, Alex ForShaw, gives the detail of the community debate, saying that the proposal attracted about 83% community participation, even without 58 of the network’s 85 validators. Notably, about 92% of non-abstainers voted for the proposal.
Facts About The Proposal 5234
The proposal suggests that the community should cut down the 1.2% tax burn parameter to 0.2% while channelling 10% of the tax obtained to the community pool to fund development activities.
As said earlier, the on-chain volume has been reduced by over 90% since the 1.2% tax parameter went live.
The new parameter voted for will go live with the new epoch, estimated at around 12:50 pm UTC on October 19.
However, the proposal faced a lot of tough times with the community member some of them too gave a go-ahead for the proposal. For instance, the proposal received approval from KuCoin, Edward Kim, Alex Forshaw, TerraCVita, and community influencer Classy Crypto.
It is possible that the reduction of the former parameter, 1.2% tax burn, will make more exchanges to burn LUNC from trading activities as said by the CEO of Binance; “the lower the fees, the greater the burn”
It is worth noting that total Binance’s LUNC burn stands at 11 billion as it recently sent a total of 2.5 billion LUNC tokens into dead wallets.