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- Terra Classic validator Christopher Harris has proposed to restore the 1.2% burn tax rate initially introduced by Edward Kim to drive LUNC to the $1 mark.
- The plan has been met with criticism, with an overwhelming 80% majority of voters against the proposal, while only 17% have expressed support.
In the effort to realize the Terra Classic community’s goal of lifting the LUNC token value to $1, a new proposition has surfaced. Christopher Harris, a validator operator under the alias JESUSisLORD, seeks to resuscitate the burn tax rate of 1.2% initially set forth by Professor Edward Kim. This ambitious strategy is part of a broader revitalization plan aiming to bring LUNC closer to its desired price target.
Harris’s proposal, designated as “The Final Vision for LUNC to $1+,” or Proposal 11549, advocates for a 1.5% on-chain tax, of which 1.2% would be directed toward burns and the remaining 0.3% would fund the ecosystem. In practical terms, participants in the market would incur a 1.5% fee, from which the network would burn 1.2%, and allocate the remaining 0.3% to the community pool.
A distinct feature of the proposition involves exempting decentralized applications (dApps) from the 1.5% on-chain tax. This exemption is intended to promote the utility of the Terra Classic blockchain, thereby incentivizing its use.
Furthermore, should the proposal gain approval, Harris plans to cooperate with the top 20 cryptocurrency exchanges to integrate the 1.2% burn tax into off-chain transactions. As part of this initiative, exchanges would be offered the opportunity to submit addresses that would be exempt from the 1.5% on-chain tax, serving as an enticing incentive.
The renewed 1.2% burn tax proposal aims to revive the demand for LUNC, as the previous lower burn rate led to a discouraging market response. Crypto Basic reported that the earlier introduction of a 1.2% burn tax caused a 70% price surge for LUNC within 24 hours, affirming the potential effectiveness of this method.
However, not all members of the community view the proposal favorably. Despite past successes with a similar burn tax, the idea of reinstating the 1.2% rate has previously been declined multiple times. Harris’s current proposal has received considerable criticism, with an overwhelming 80% of votes cast against it, and only 17% in favor.
