In a landmark decision, the LUNC community has voted in favour of governance proposal #11933, signalling a significant shift in the project’s economic model. The proposal, spearheaded by community member JwesusisLord, aims to increase the on-chain tax from the current 0.5% to a new rate of 1.5%. This adjustment will be achieved through a breakdown of 1.2% for the burn tax (maintaining the original burn tax), 0.15% allocated to the community pool, and another 0.15% directed towards staking rewards.
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I have voted YES to #LUNC governance proposal #11933 to increase the on-chain tax from 0.5% to 1.5%, comprising of a 1.2% burn tax (the original burn tax), and 0.15% to the community pool and 0.15% to staking rewards! 👏
If this passes it would be implemented automatically, and… pic.twitter.com/y6OtmbTi5L
— JESUSisLORD (@ForTheCross_CH) December 17, 2023
The proposed changes, if implemented, are poised to have a triple impact on the project’s dynamics. Notably, the burn rate from the tax will see a threefold increase, enhancing the project’s ability to reduce the circulating supply of LUNC tokens. Simultaneously, the community pool and staking rewards will also experience a threefold boost, providing additional resources for development incentives and user rewards.
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This move comes at a strategic time as the LUNC community aims to capitalize on the potential of the upcoming bull market. The increased on-chain tax is expected to generate higher volumes, resulting in more substantial burns for both LUNC and USTC tokens. Additionally, the augmented funding to the community pool will be strategically utilized to incentivize development initiatives, fostering utility and growth within the LUNC ecosystem.
JwesusisLord, a prominent advocate for the proposal, expressed strong support for the community-led initiative, emphasizing the positive impact it could have on LUNC and USTC, ultimately benefiting investors. The comparison to credit card transaction fees highlights the community’s commitment to maintaining a reasonable on-chain tax rate, which, at 1.5%, remains lower than the typical fees associated with purchasing crypto by credit card.
As the proposal awaits implementation, the LUNC community is gearing up for a new era characterized by increased sustainability, stronger incentives for developers, and enhanced rewards for stakers. The successful passage of this governance proposal underscores the decentralized nature of the LUNC project, where community members actively shape the trajectory of the platform.
Stay tuned for further updates as the LUNC community works towards realizing the proposed changes, positioning the project for continued success in the evolving cryptocurrency landscape.