The community of the Terra Classic releases proposal 11243 which is designed to increase LUNC gas fees by up to 5X. Although the proposal did not go well with some of the community members a few members voted a “No” while the minority voted a “Yes” already.
Proposal 11243 To Increase The LUNC gas fee
The proposal is the second part of a more significant proposition created three days ago, which suggested that the community deprecate the Seigniorage Reward Policy, thereby stopping the reminting of 10% of already-burned tokens.
An anonymous community member Dfunk released the proposal and highlighted some of the drives behind the motion in the writing of the proposal. The author mentioned the drastic decrease in the on-chain burn rate within the past four weeks although it is believed to be lessened by the decision of Binance to reduce its burns. As burns decrease, so do funds realized from the Seigniorage Reward Policy.
Approximately 100M LUNC tokens have been reminted and sent to the community pool in the past four weeks from the 1B LUNC tokens burned within the same time frame. This is based on the current 10% Seigniorage Reward Policy rate.
Notably, the network registered two billion LUNC in transaction fees in the past four weeks and it is noted that 1B representing 50% of the community tax has been sent to the community pool. The implication of this is that the community pool generates more funds from transactions from transaction fees than the Seigniorage Reward Policy.
While the proposal seeks to eliminate the Seigniorage Reward Policy, it is looking to make up for the decrease in community pool funds by increasing transaction fees by 5x. This should send more funds to the community pool. Proposal 11243 addresses the second part – the need to increase the fees.
Current Result of the Poll
As previously noted in this post, the proposal was submitted by Dfund some hours ago and since that time, there have been a lot of votes both against or support it. For instance, Out of the 8 validators, 7 voted “Yes,” while 1 validator voted “No with a veto.”
In a nutshell, there have been 1,136 respondents and out of this number, 73% have voted “Yes,” while 20% have voted “No.” 7% of the respondents have abstained from voting. However, more votes are still expected from the community as the poll results will determine Crypto King’s Burn and Build validator’s vote on the proposal.
Crypto King, LUNC influencer and operator of the Burn and Build validator, launched a Twitter poll today to get the opinions of his delegators before voting on the proposal.