Binance May Support Terra Classic Increasing Burn Tax To 0.5%

After denying many proposals related to raising LUNC burn and burn tax, the Terra Luna Classic community finally decided to increase the LUNC burn tax. The move came as LUNC price fell below $0.000010 last week, reaching levels of last May when TerraUSD (UST) and LUNA prices collapsed drastically.

Meanwhile, some Terra Classic influencers have hinted at proposals coming in June to restore LUNC burn tax to the initial 1.2% level. However, the community may have to convince Binance CEO “CZ” before making these decisions as Binance warned to revoke its LUNC burn mechanism.

Also Read: Ethereum Clients Release Crucial Updates As Blockchain Suffers Two Outages in 24hrs

Terra Classic Community Votes On Increasing Burn Rate to 0.5%

The parameter change proposal 11515 “Increase the Burn tax to 0.5%” is up for voting. The proposal aims to inform the community to focus on reducing LUNC supply through increasing burn tax as they do to boost LUNC demand via staking.

Until now, the proposal has received 77% votes in favor, with 20% “No” and 3% “No with veto”. It has few days left to pass the quorum and threshold.

Top validators have decided to support increasing the burn tax to 0.5%, which includes TCB, StakeBin, JESUSisLORD, Moonshot, Classy’s Sphere, and others. Amongst 28 validators who have voted, 17 favor the proposal, 6 are against it, and 5 have voted “Abstain.”

Also Read: Terraform Labs Moves Tokens Worth Millions A Year After Terra-LUNA Crisis

Binance May Support Raising LUNC Burn Tax

Some believe the burn tax should be raised permanently to the initial 1.2% as introduced by core developer Edward Kim. Binance will completely agree with it as the burn tax was never the reason for reducing the LUNC spot and margin trading fees contribution to 50%, but Proposal 10983 to contribute funds to the community pool from burn tax.

Increasing the burn tax is likely to increase Binance LUNC burns and overall LUNC burn rate. Meanwhile, a new project burned 1.5 billion LUNC tokens in two weeks, comparatively larger than Binance’s 1.2 billion LUNC burn in a month.

LUNC price currently trades at $0.00008917, down 1% in the last 24 hours. The 24-hour low and high are $0.000087 and $0.000091, respectively.

Also Read: Popular Dev “Zaradar” Doubts Over Success Completion of Terra Classic Cosmwasm Upgrade