LUNC Burn Tax Allocation Change Vote Underway in Terra Classic
The Terra Classic community is currently voting on a proposal to revise the LUNC burn tax in order to fund the Oracle pool. This proposal, named Proposal 12114, is an extension of Proposal 12098 that was put forward by StrathCole in April.
Proposal 12098 suggested modifying the allocation of the burn tax, with 80% directed towards burning, 10% to the Community Pool, and 10% to the Oracle Pool instead of rewards. The community widely supported this idea, but it has not been implemented yet.
Terra Classic Proposal 12114: A Closer Look
Now, Frag, a former L1 Joint Task Force developer, introduced Proposal 12114, which builds upon Proposal 12098. It aims to carry out the changes outlined in Proposal 12098. However, it has not yet reached the required voting threshold for approval, partly due to the abstention of major validators, including Allnodes, which holds 14.66% of the voting power. Despite this, some smaller validators have shown strong support for the proposal.
One of the notable supporters of Proposal 12114 is Christopher, a Terra Classic community member who runs the JESUSisLORD validator. He believes that directing 10% of the burn tax to the Oracle Pool is crucial for long-term staking rewards, even if it slightly reduces the APR. It is important to note that the proposal’s success depends on broader participation and approval from the larger validators.
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Unveiling the Implications of the Proposals
If passed, the proposed changes aim to create a more equitable distribution of the tax and strengthen staking rewards for the long term by allocating 10% of the tax to the Oracle Pool. This shift would also decrease the dependence on block rewards that currently include gas fees, and it is projected to decrease the APR of staking rewards by approximately 0.5%. However, implementing this change would require an L1 coding, as it cannot be achieved through simple parameter modifications.
In addition, the LUNC token has recently experienced a price decrease, trading at $0.00009862, as it fell below the $0.0001 threshold amid a 6.3% drop over the last 24 hours. These discussions around the burn tax and Oracle Pool funding come in the midst of sustained efforts to support LUNC price.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
