Terra Classic Community Divides On 1.2% Burn Tax, LUNA Merger
Terra Classic community witnesses crucial decision-making moments as LUNC developers re-enable Inter Blockchain Communication (IBC) with Cosmos blockchains. Meanwhile, the community remains divided on whether to increase the burn tax parameter from 0.2% to 1.2% amid the IBC reopening and whether LUNC should merge with LUNA.
Terra Community Votes On Crucial Developments
Terra Rebels core developer Edward Kim’s Proposal 10950 to re-enable three IBC channels for Cosmos-based chains Osmosis, Crescent, and Juno has already hit the “pass threshold” with 100% support. Moreover, Edward Kim noted that the community could expect a significant boost in the number of projects building on the network after the v23 upgrade containing the CosmWasm upgrade.
With the developers reopening IBC channels at block 10,542,500, estimated on December 5, Proposal 10960 aims to increase the burn tax to 1.2%, with taxing 0.96% as the on-chain burn fee and allocating 0.24% to the Community Pool.
The proposal aims to take advantage of the increased volume from Osmosis and make up for the slow burn rate after the 0.2% burn tax implementation. Furthermore, the 2nd part of the proposal suggests splitting the 1.2% burn tax to control burn rate, community pool fee, Oracle rewards pool fee, and USTC repeg pool fee.
While the proposal has somehow passed by the community, it faced resistance from developers and popular validators who believe it would only hurt the chain. Validator ClassyCrypto in a tweet revealed that he has voted “No” on the proposal as increasing the burn tax will impact efforts to bring back projects to the chain.
Meanwhile, others believe 0.2% has decreased the burn rate and the burn tax parameter should again be changed to 1.2%.
The divide was seen on whether LUNC should merge with LUNA to increase utility and bring back the projects to the chain. Most assume the Terra Classic community will never merge with LUNA as the Terra Rebels’ Revival Roadmap indicates an aim to become independent of LUNA and Do Kwon.
Will the Divide Plunge LUNC Price?
Experts claim Terra Classic price will dive more if the community remains divided on key proposals. With December as a key month for the community due to several initiatives, the divide may influence LUNC price.
LUNC price plummeted nearly 4% in the last 24 hours, with the current price trading at $0.000156. The 24-hour low and high for LUNC are $0.000153 and $0.000166, respectively.
The community has burned 28.657 billion LUNC tokens and staked 900 billion LUNC tokens.
Also Read: Binance Terra Classic (LUNC) Monthly Burn Mechanism
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