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LUNC Community Approves Tax Burn Reduction from 1.2% to 0.2%

The LUNC community has voted to reduce the tax burn rate for on-chain transactions, aiming to enhance user experience and foster ecosystem growth.
Published on 2022-10-19

LUNC Community Votes to Lower Tax Burn Rate

The LUNC community has approved Proposal 5234, which reduces the tax burn rate for on-chain transactions from 1.2% to 0.2%. This decision, supported by 75% of the community members, aims to create a more favorable environment for users and traders on the Terra Classic network.

Key Changes to Fees and Tax Burn

  • Deposit Fees: Binance will lower the consolidation fee for LUNC and USTC deposits from 1.2% to 0.2%.
  • Withdrawal Fees: Users will receive their withdrawal amount minus Binance's withdrawal fees and the new 0.2% tax burn.
  • Tax Burn Purpose: A portion of the revenue generated from the tax burn will fund the Terra Classic blockchain infrastructure and support the teams maintaining the network.

Implications for the Ecosystem

The reduced tax burn rate is expected to attract more on-chain users, increasing transaction volume and frequency. This change encourages off-chain holders and CEXs to return to on-chain trading, helping sustain the blockchain's ecosystem with lower penalties and higher demand.

This adjustment reflects the community's commitment to improving the usability and sustainability of the Terra Classic network.

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