The Terra Classic (LUNC) community has been in a controversy since one member proposed reducing the 1.2 percent tax burn. Ikujiro, a member of one of the LUNC communities, initially wanted LUNC to reduce this tax burn to 0.2 percent.
In addition to reducing the tax burn at LUNC, he suggested that LUNC add 10 percent of its tax profits to the community pool. It is worth noting that some crypto exchanges, including Binance, have initiated burns.
LUNC Burning Discussions Continue
As the debate continued, opinions changed somewhat when Edward Kim, a prominent community member, publicly shared his thoughts on the dire situation at hand.
Sharing on his Twitter account, Kim stated that he carefully analyzed the pros and cons of sticking to the current tax burn. He also stated that he is considering the proposed option.
My thoughts on Terra Classic Proposal 5234 https://t.co/gYpPEejNHJ
— Edward Kim (@edk208) October 14, 2022
According to him, lowering the tax could lead to an increase in LUNC’s on-chain volume. It can also help attract new delegations with the help of validators. Who said:
“The increase in volume will be mixed with unlocking the new benefit on the chain and therefore may not be accurately measured by the timing of this offer”
The blockchain expert noted that those in favor of mitigation may be doing it because of their bias. On the other hand, Kim added that the maintenance of the 1.2 percent tax was also due to the fact that some community members thought it was too early to change the course of the project.
What’s Happening at LUNC While These Discussions Are Happening?
As a result of all these developments, it was obvious that LUNC was not getting the attention it wanted. According to Santiment data, LUNC’s social volume has drastically declined. If we evaluate it on a price basis, it is seen that the value of LUNC has lost around 2.7 percent.
Apart from this, there is also a decrease in LUNC trading volume. According to CoinGecko data, as of writing, LUNC’s 24-hour trading volume is in the band of 187 thousand dollars.
