Genuine Labs Proposes Tax2Gas Implementation for Terra Luna Classic

Genuine Labs, a prominent developer group within the Terra Luna Classic community, has announced plans to proceed with the Tax2Gas implementation. This proposal aims to streamline the tax process by incorporating it into the gas fees, eliminating the need for separate handling and calculation. The initiative, supported by notable developers StrathCole and Genuine Labs, seeks to address various issues currently plaguing the burn tax system.

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Current Challenges with Burn Tax

Implemented in 2022, the burning tax for Terra Luna Classic transactions has faced multiple challenges. Contract developers are required to manually calculate and adjust the tax amounts, while clients and decentralized applications (dApps) must also perform their tax calculations.

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This process is complicated by the fact that the simulation endpoint only provides gas estimates, not tax calculations. Additionally, migrating audited dApps becomes cumbersome due to these Classic-specific adjustments, often necessitating potential re-audits. These challenges have prompted the community to seek a more efficient solution.

The Tax2Gas Solution

Genuine Labs proposes the Tax2Gas approach to resolve these issues. By integrating the tax directly into the gas fees, the need for separate handling and calculations is eliminated. This method promises a simpler and more efficient process, which could prevent potential attacks on Terra Luna Classic through end-to-end (e2e) testing vulnerabilities.

What Tax2Gas has to offer

The proposal includes an increase in the on-chain tax rate to 1.5%. This adjustment would restore the original 1.2% burn tax, with an additional 0.3% allocated to fund the chain under the current 80/20% tax split. This means 80% of the tax would continue to be burned, while 20% would be distributed equally between the Community Pool and the Oracle Pool.

Implementation Timeline and Budget

Genuine Labs has outlined a detailed plan for the implementation of Tax2Gas. The developers estimate that five weeks will be required for research, development, basic testing, and deployment. The total budget for this project is projected to be $25,000, payable in LUNC. Spend proposals will be submitted during the initial weeks of the implementation phase and upon completion of the specified tests.

What the community stands to gain

The Terra Luna Classic community is poised to benefit from the proposed Tax2Gas implementation by Genuine Labs. This initiative aims to streamline the tax process, reduce manual calculations, and enhance the overall efficiency of the ecosystem.

With a well-defined timeline and budget, the developers are set to deliver a solution that addresses current challenges and supports the sustainable growth of Terra Luna Classic. The community’s move towards ending the existing burn tax signifies a step forward in optimizing transaction processes and maintaining the integrity of the chain.

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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.