- The importance of community governance in blockchain ecosystems, particularly through proposals like #12098 in Terra Luna Classic.
- By actively participating in decision-making processes, community members can shape the direction of the project and address emerging challenges, such as discrepancies in rewards allocation.
Terra Luna Classic, a resilient blockchain community, has approved adjustments to its burn tax model in response to dwindling liquidity and sell pressure on the LUNC token.
In a recent development, proposal #12098 aimed at altering the distribution of the existing 0.5% burn tax garnered support from the Terra Luna Classic community. The proposal, titled “Changing the Reward Share Distribution of the Burn Tax,” seeks to reallocate the 0.5% tax to better serve the ecosystem’s long-term sustainability.
Currently, the burn tax is split into two parts: 80% for burning tokens and 20% for distribution, with the latter divided between the Community Pool (CP) and immediate block rewards. The proposed change suggests mirroring the distribution of the 80% burn while evenly dividing the remaining 20% between the Community Pool and the Oracle Pool.
If implemented, this adjustment would reshape the Terra Luna Classic chain dynamics. Block rewards would solely comprise gas fees as initially intended, eliminating immediate block rewards. Instead, a portion of the tax would be directed towards the Oracle Pool, aiming to enhance the platform’s staking environment and reduce LUNC inflation over time.
The proposal, while maintaining the 0.5% burn tax rate and cumulative LUNC burn sum, received widespread support from validators within the Terra Luna Classic community. Notably, Lunanauts, a prominent validator, endorsed the proposition, highlighting its potential to promote sustainability and balance within the ecosystem.
With 70% of voters backing the proposal, there is optimism surrounding its potential to enhance the Terra Luna Classic blockchain’s resilience and fairness for all participants. However, despite community enthusiasm for the proposed changes, the immediate impact on LUNC’s price remains to be seen.
Meanwhile, the LUNC token faces significant sell pressure, with pending sales surpassing bids by a ratio of $3 million to $1 million. This imbalance in liquidity suggests a decline in overall trading activity, signaling challenges in market depth.
The proposed adjustments to the burn tax model underscore the Terra Luna Classic community’s proactive approach to governance and ecosystem development. Following the crisis in May 2022, community-driven initiatives like proposal #12098 represent crucial steps towards revitalizing and strengthening the Terra Luna Classic blockchain.
As the community continues to navigate challenges and enact meaningful changes, the outcome of governance proposals like this will shape the future trajectory of Terra Luna Classic and its ecosystem.
Terra Luna Classic Adapts Burn Tax Model Amid Market Challenges
Despite facing sell pressure and liquidity concerns, Terra Luna Classic demonstrates resilience by approving adjustments to its burn tax model. The community’s proactive approach to governance proposals reflects its commitment to long-term sustainability and ecosystem development. As the proposed changes take effect, stakeholders await the outcome, hoping for a positive impact on LUNC’s price and ecosystem dynamics.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
