earth classic [LUNC] The community has been in turmoil over the debate since one member proposed a 1.2 percent reduction in the tax break. LUNC community member Akujiro initially asked LUNC to reduce the tax to 0.2%.
In addition to the reduction, he suggested that LUNC should add 10% of tax profits to community mining pools. Recall that some cryptocurrency exchanges, including Binance, have confirmed support for burns.
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However, the focus of the debate changed when prominent community member Edward Kim publicly shared his thoughts on the collapse at hand.
My thoughts on Terra Classic Proposal 5234 https://t.co/gYpPEejNHJ
— Edward King (@edk208) October 14, 2022
back and forth, but here’s where I stand
King shared via his Twitter page, noting that he has carefully analyzed the pros and cons of keeping the status quo in the current tax break. He also noted that he had considered the proposed options.
According to him, lowering the tax could lead to an increase in LUNC’s on-chain transaction volume. Additionally, it can help attract new delegates with the help of validators. Kim said in his Medium post,
“The increase in volume will be confused with the unlocking of new utilities on-chain, so the timing of this proposal may not be accurately measured.”
Blockchain experts point out that those in favor of reduction may do so because of their bias. On the other hand, Kim said maintaining the 1.2% tax is also because some community members felt it was too early to change the course of the project.
He also mentioned that some members felt that the community did not have enough data to carry out such a step. All in all, King concluded that he supports the cuts. He also urged other LUNC community members to take a stand.
How does this affect LUNC?
Given the developments, LUNC doesn’t appear to be getting the attention it might have wanted. According to Santiment, LUNC’s social volume has dropped sharply, and as of October 15, its value is 50.
As for its price, there doesn’t seem to be a respite in sight. On-chain crypto tools show that LUNC lost 2.76% of its value as of Oct. 15, trading at $0.000271. However, news at press time did witness another 1.8% drop to $0.000268.
The decline in LUNC trading volume is unstoppable. As of October 15, trading volume was $287.59 million, a 35% decrease from October 14.
In conclusion, the LUNC community appears to be divided on the proposal. Kim’s comments on Twitter showed that while some thought the reduction was absurd, others thought 0.2% was too small and should be increased.
Giving yourself a 10% tax is worse than burning it. Developers absolutely deserve to be paid – whether through donations or through formal community pool spending proposals – but automatically redirecting 10% of every burn to “contributors” is authoritarian and wrong.
— FatMan (@FatManTerra) October 14, 2022
Unfortunately, with a tax rate of 1.2%, the volume has dropped a lot. I think there should be a tax cut, but instead of 0.2%, I think it would be more reasonable to choose 0.6%. or at least 0.4%. Especially after 1.2%, 0.4% will be adopted very quickly.
— Addicted to LUNA Classic 🇹🇷 🌕🔥 (@addictedlunaa) October 14, 2022
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