Terra Luna Classic (LUNC) Climbs on Governance Approval of Tax2Gas Proposal

• The Terra Luna Classic community has successfully approved the Tax2Gas implementation proposal by core developer Genuine Labs.
• This proposal seeks to simplify the tax handling process for dApps developers by integrating taxes directly into the gas fees.
• Notably, the decision has sparked discussions about potentially raising the burn tax to 1.2% among community members.

Learn how the Tax2Gas proposal could impact the Terra Luna Classic ecosystem and what it means for LUNC and USTC prices.

Terra Luna Classic’s New Tax2Gas Proposal: What You Need to Know

This major step comes after Proposal 12115, titled “Genuine Labs Tax2Gas Implementation,” garnered significant support in a governance vote. The initiative, led by Genuine Labs, intends to embed the tax component within gas fees, thereby removing the complexities faced by dApp developers in tax calculations. The move aims to enhance chain security by preventing potential attack vectors through rigorous end-to-end testing.

The Voting Outcome and Community Reactions

The proposal received 74.91% “Yes” votes, with 25.03% opting to abstain, reflecting mixed sentiments within the community. Supporters included well-known validators such as Interstellar Lounge and HappyCattyCrypto. However, the prominent validator, Allnodes, chose to abstain, citing inadequate public discussions and warning that future proposals might face a “NO” if communication doesn’t improve.

Implications for LUNC and USTC Prices

Following the approval, LUNC prices surged by 6%, though they later retreated. As of now, LUNC trades at $0.00009023, showing a lack of sustained interest with a decrease in trading volume by 32%. Community members are optimistic about hitting the $1 mark in this bull cycle, provided LUNC can breach the $0.00012 resistance level. Similarly, USTC saw a modest 2% increase and is currently priced at $0.01857. Despite the price hike, trading volume for USTC also fell by 12%, showing a similar trend of diminished trader interest.

Next Steps: Higher Burn Taxes?

There’s now a burgeoning discussion within the Terra Luna Classic community about raising the burn tax to 1.2%. Once incorporated, this could compel all crypto exchanges to execute burns on both buys and sells, likely driving LUNC prices higher. Genuine Labs has estimated a 5-week timeline for further research, development, and deployment, with an overall budget of $25,000 in LUNC. The community believes that this renewed focus on tax integration will solve several existing issues, especially for dApp developers who currently face cumbersome manual calculations.

Conclusion

The successful passage of the Tax2Gas proposal marks a pivotal moment for the Terra Luna Classic community. While challenges remain, particularly concerning public communication, there’s a sense of optimism about the potential long-term benefits. As the community moves forward with higher burn tax discussions, eyes will be on LUNC to see if it can meet the ambitious $1 price target. The impact on the Terra ecosystem will be closely monitored, given its broad implications for developers and traders alike.