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.
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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.
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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.