The Terra Luna Classic community has voted against a proposal to raise the burn tax to 1.5%. The community members expressed dissatisfaction with the recurring proposals to modify the burn tax, particularly regarding its increment. The proposal received substantial criticism for being an illogical and lazy attempt.
What Led to the Rejection?
Proposal number 12105 aimed to increase the burn tax; however, the community dismissed it. The majority of voters highlighted the proposal’s lack of rationality and deemed it a “lazy effort.” It was clarified that this was a text proposal, not a parameter change, meaning even its approval would not have resulted in a tax change.
The proposal only garnered 21.35% of “yes” votes, with 32% voting “no” and 38% casting “no with veto” votes. Validators also opposed the proposal due to insufficient data, lack of complementary strategies, and non-existent volume projections to justify a tax increase.
Recently, the community redirected the distribution of the burn tax from rewards to the oracle pool. This new proposal saw a significant 70% “yes” vote, supported by 37 validators.
How Did the LUNC Price React?
The decision set the Terra Classic burn tax at 0.5%, allocating 80% for burning and dividing the remaining 20% equally between the Community Pool and the Oracle Pool. The LUNC price is currently trading at $0.0001150, following a 2% decline within the last 24 hours. The lowest and highest price points recorded were $0.0001143 and $0.0001207, respectively.
In the past 24 hours, LUNC trading volume surged by 31%, reflecting increased trader interest. Meanwhile, USTC, a former stablecoin, held steady at $0.02269 after a 1% drop, with its price fluctuating between $0.02246 and $0.02377.
Actionable Insights
- Community sentiment strongly influences proposal outcomes; understanding and addressing concerns are vital.
- Proposals require thorough data and strategy to gain support from validators and community members.
- Market awareness and reaction can impact trading volumes and price stability.
Conclusion
The Terra Luna Classic community’s rejection of the burn tax increase proposal highlights the importance of well-founded and logical initiatives. The focus now shifts to maintaining price stability and fostering community-driven decision-making.