LUNC On-Chain Tax: Past vs. Future
The Terra Classic community is voting on a major proposal to revise the on-chain tax rate to 1.5%. Here is a quick comparison of how the tax model has evolved and where it is heading.
🏛️ The Past (2022 – 2023)
Initial 1.2% Tax (2022): Introduced to reduce the inflated supply rapidly. While it triggered massive burns, high transaction friction reduced on-chain volume and dApp activity.
Reduction to 0.2% & Adjustment to 0.5%: To revive utility, the community lowered the tax rate. It was later set to 0.5% with an 80/10/10 distribution model (0.4% burn, 0.05% community pool, 0.05% oracle pool).
🚀 The Future (New 1.5% Proposal)
Higher Net Burn Rate (1.2%): Increases the direct burn rate back to 1.2% (a 3x jump from 0.4%).
3x Treasury & Staking Boost: Triples funding for the Community Pool (0.15%) to support core developers like Orbit Labs and the Oracle Pool (0.15%) to sustain long-term staking rewards.
Matured Infrastructure: Unlike 2022, the network now has improved contract integrations and tax distribution mechanics to handle higher rates more effectively.
💡 Key Takeaway
The shift from 0.5% to 1.5% marks a strategic return to aggressive supply reduction while ensuring three times more resources for ecosystem development and stakers.
What is your take on returning to a 1.2% net burn rate?
#LUNC✅ C $USTC USTC #TERRACLASSİC #crypto #BinanceHerYerde
$LUNC
$BTC
#avax
The Terra Classic community is voting on a major proposal to revise the on-chain tax rate to 1.5%. Here is a quick comparison of how the tax model has evolved and where it is heading.
🏛️ The Past (2022 – 2023)
Initial 1.2% Tax (2022): Introduced to reduce the inflated supply rapidly. While it triggered massive burns, high transaction friction reduced on-chain volume and dApp activity.
Reduction to 0.2% & Adjustment to 0.5%: To revive utility, the community lowered the tax rate. It was later set to 0.5% with an 80/10/10 distribution model (0.4% burn, 0.05% community pool, 0.05% oracle pool).
🚀 The Future (New 1.5% Proposal)
Higher Net Burn Rate (1.2%): Increases the direct burn rate back to 1.2% (a 3x jump from 0.4%).
3x Treasury & Staking Boost: Triples funding for the Community Pool (0.15%) to support core developers like Orbit Labs and the Oracle Pool (0.15%) to sustain long-term staking rewards.
Matured Infrastructure: Unlike 2022, the network now has improved contract integrations and tax distribution mechanics to handle higher rates more effectively.
💡 Key Takeaway
The shift from 0.5% to 1.5% marks a strategic return to aggressive supply reduction while ensuring three times more resources for ecosystem development and stakers.
What is your take on returning to a 1.2% net burn rate?
#LUNC✅ C $USTC USTC #TERRACLASSİC #crypto #BinanceHerYerde
$LUNC
$BTC
#avax