Terra Classic Considers Tax2Gas Proposal to Streamline Burn Tax

Genuine Labs, a development team, has submitted a proposal to the Terra Classic community for implementing a “Tax2Gas” system. This proposal aims to simplify the current burn tax mechanism and address associated challenges.

Current Burn Tax Issues

Since late 2022, Terra Classic has utilized a burn tax mechanism, similar to the stability tax used for USTC. However, this system has resulted in several difficulties for developers and users:

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  • Manual Tax Calculations: Contract developers currently need to manually calculate and adjust the burn tax for each transaction.
  • Client-Side Tax Handling: dApps (decentralized applications) and clients also require independent tax calculations, as the simulation endpoint only estimates gas fees.
  • Migration Challenges: Migrating pre-audited dApps to Terra Classic becomes cumbersome due to these tax-related adjustments, often necessitating re-audits.

Tax2Gas: A Proposed Solution

To address these issues, Genuine Labs proposes Tax2Gas. This system would integrate the burn tax directly into the gas fees, eliminating the need for separate calculations by developers and dApps. This simplification is expected to:

  • Reduce development complexity for contract creators.
  • Streamline the user experience by incorporating tax into the standard gas fee calculation.
  • Facilitate easier migration of dApps by removing the requirement for tax-specific adjustments.

Development Plan and Team Expertise

The proposed development plan outlines a three-phase approach:

  • Phase 1: Research (1 week): This phase involves a thorough analysis of the current system and potential Tax2Gas implementation strategies.
  • Phase 2: Develop (2.5 weeks): The development team will build the Tax2Gas system according to the defined specifications.
  • Phase 3: Test and Deploy (1.5 weeks): The developed system will undergo rigorous testing before deployment onto the Terra Classic blockchain.

Genuine Labs emphasizes its commitment to security by highlighting that all three team members have undergone a rigorous KYC (Know Your Customer) process through a third-party service, with verification evidence readily available.

Budget and Next Steps

The estimated budget for this 5-week project is $25,000, payable in LUNC tokens after the completion of all tasks and the submission of a separate Community Pool spend proposal.

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This proposal is currently in the “Signaling” phase, seeking community approval to proceed with development. The final implementation will be contingent upon the successful completion of the project and the subsequent approval of a Community Pool spend proposal.

By streamlining the burn tax process, Tax2Gas has the potential to improve the overall development experience and user experience within the Terra Classic ecosystem. The Terra Classic community will now have the opportunity to discuss and vote on the proposal.

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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.