Friday, January 27

Edward Kim Suggests A Proposal To Reimburse The Affected Addresses As A Result Of 1.2% Tax Fee Implementation

In the recent development, one of the core developers behind the Terra Classic, Kim, proposes that the community reimburses the victim’s addresses of the incident of the challenges suffered by the network following the developers implementing the 1.2% tax fee.

Terra Classic core developer Edward Kim has introduced a proposal to reimburse users who lost fees due to errors resulting from the 1.2% tax burn parameter implementation.

Kim disclosed the proposal in the recently released tweet which explained that the users from September 21 to 28 got taxed despite their transactions failing to go through due to problems encountered with the tax parameter change.

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Terra Classic To Reimburse The Affected Addresses As Proposed By Kim

Kim further said that the addresses were affected in the course of the incident by another developer. For this reason, Kim proposed that the community reimburse with a sum of 296 million Terra Luna Classic (LUNC) 

The actual reimbursement amount is 295 million LUNC, with the extra 1 million LUNC earmarked for fees. Notably, the issue affected over 2,000 users, 9 of which lost over 5 million LUNC. Kim says the majority of these big losers are centralized crypto exchanges.

Meanwhile, per the proposal, hundreds of users who lost less than 10 LUNC will not receive reimbursements due to transaction costs.

 The analysis done by Kim revealed that 2,214 wallets lost between 10 and 5 million LUNC and would receive reimbursements totalling 131 million LUNC algorithmically. At the same time, the Terra Grants Foundation will try to contact the top 9 addresses for manual refunds of about 165 million LUNC. In addition, the proposal asserts that the TGF will return any excess LUNC resulting from failure to identify wallet holders. The proposal affirmed the account of the transactions by TGF at the end of the process.

Read Also: Ripple’s Chief, Brad, Says Over Half Of The Transaction Volume In its Payment Rails Now Goes Through XRP

Notably, a good number of the community of LUNC has received the news with a big, saying that the step is a proper thing to do and good use of the community pool funds.

Surprisingly, while others are celebrating the idea of reimbursement, prominent community influencer Classy has questioned how developers plan to recapitalize the community pool before the next quarter.


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