Terra Classic Tax Burn: Everything You Need to Know

2022/11/09By:

Abstract:

  • A new 1.2% transaction tax burn mechanism is being planned for implementation by Terra Classic (LUNC).
  • The error caused by the destruction of the Terra ecosystem necessitated the introduction of the 1.2% tax.
  • Some cryptocurrency markets may refuse to participate in the tax burn.
  • The price of LUNC has increased by a whopping 200%.

 

The tax burn of Terra Classic has sparked debate in the cryptocurrency community. Many people are concerned about the future of Luna Classic, the native token of the original Terra network (LUNC). Recently, Tera Classic [LUNC] has been on the cusp of a major breakthrough, making the preceding days extremely eventful.

 

The community has been concerned about the surplus of LUNC supplies ever since the market crash in May. This problem is being addressed by the 1.2% tax. A group of people who hope to get rich quick by causing a rally in the price of the crypto asset Terra Classic have been advocating for months for a massive token burn that would reduce the supply of Terra Classic and drive up the price.

 

Terra Classic Tax Burn, Explained

 

In June, the first detailed plan to implement this transaction tax was put forward. However, it did not elaborate on how this would work or on the coding that would need to be inserted into the network’s backbone in order for it to function.

 

However, just recently, a community member named Edward Kim presented a more detailed proposal in Terra Classic’s official forum that clarified the Tax’s operation in greater detail.

 

Terra Luna’s collapse in early 2022 led to a precipitous decline in the security of digital transactions. The loss of such a large player sent shockwaves through the industry, ushering in a “crypto winter” that was particularly challenging for cryptocurrency investors.

 

Many have been concerned about the availability of Terra Classic since the market crash in May. This problem should be eased by the 1.2% tax. In the business world, mention of Terra Luna is common knowledge. Just where did this Terra Classic thing come from, anyway? Do Kwon devised a scheme to revive Terra Luna’s ecosystem after its collapse. And from there, Terra 2.0 was conceived.

 

The concept successfully produced a new layer-1 Terra blockchain devoid of the underlying algorithmic stablecoin. Previously known as Terra Blockchain, the new name for the old blockchain is Terra Classic (LUNC).

 

Terra is the official name for the new blockchain system (LUNA).

 

In any case, the 1.2% tax may be news to many LUNC traders and would-be traders, so here’s a quick rundown. The 1.2% fee will be applied to all Terra Classic transactions processed on the main network. This entails not only dealing with a wallet, but also a smart contract. However, transactions conducted on an exchange might not be subject to the Tax.

 

The goal of the Tax is to help deal with the surplus of Terra Classic. One major drawback is that this solution will increase the cost of on-chain transactions.

 

Although there has been a shift toward accepting a deflationary price by the community at large, it is unclear whether or not this will pose difficulties for ongoing projects.

 

BTCC APP DOWNLOAD


Download App for Android Download App for iOS

Terra Classic Price Pumps

After hearing Kim’s proposal, many people speculated that the implementation of the Tax would be a watershed moment for Terra’s LUNC token, with prices rising to as much as $1 per token. Therefore, it is obvious why the token has been doing so well in the past few weeks.

Throughout the month, their idea gained traction, and the price jumped 21% from $0.0002387 to $0.0002899. Those gains could approach 200 percent for long-term LUNC holders.

Based on information from CoinMarketCap, there are currently 6.15 trillion LUNC tokens in circulation. If all 6.15 trillion were to change hands every day, only about 700 billion would be taken out of circulation, for a grand total of 6.07 trillion.

In all likelihood, the positive responses to the 1.2% tax contributed to the week’s strong performance of LUNC. This rise was sufficient to push it into overbought territory, where a short-term bearish outlook is triggered.

An increase in social volume is also something LUNC is currently experiencing. This has become more apparent in recent days, suggesting that traders are paying closer attention to the news.

The introduction of such a potent incentive for long-term HODLing could lead to greater terra-classic accumulation and less price decline.

Explained: Terra Classic Tax Burn 1

 

Terra Classic’s weighted emotion indicator has shifted in favor of bulls as a response to the widespread pessimism that has been weighing on the market. As a result of these changes, investors are becoming more receptive to LUNC, which could usher in a period of robust accumulation for the network.

The network’s market cap would be around $6 trillion if LUNC tokens were to increase in price to $1 each. To date, however, no decentralized apps have been built to make use of this network (dApps). There is also no longer a dedicated development team working on it to fix bugs and add new features that would be helpful in making the ecosystem flourish.

The 1.2% Tax Burn May no be Supported by Crypto Exchanges

 

According to information provided by CMC, the vast majority of LUNC trading takes place on regulated markets like Binance, Gate.io, and Huobi. For this reason, some exchanges may decide to delist the token if the community votes in favor of this proposal.

Binance has stated that as of September 7th, all LUNC deposits and withdrawals will be halted for the Ethereum network, BNB Smart Chain, and Polygon Network. Due to the recent closure of the Terra Classic Shuttle bridge, this decision has been made.

Binance is the most used CEX for trading LUNC at the moment, with over $300 million changing hands in the last 24 hours. Transaction volumes may decrease in relation to LUNC trading if Binance stops supporting trading on these networks before the shutdown of the Shuttle bridge. Potentially lower trading volume due to higher transaction fees.

BTCC APP DOWNLOAD


Download App for Android Download App for iOS

New Terra Classic Tax Burn

 

The citizens of Terra LUNA Classic were overwhelmingly supportive of the move to alter the LUNC tax burn rate. The grassroots movement that led to the proposition was widely praised.

 

Twitter user Akujiro said that community members had brought forth the project after it was approved by the Terra LUNA Classic administration. According to Akujiro, 82% of voters approved the idea, and this time around, KuCoin, a cryptocurrency exchange, joined in.

 

To sum up, Akujiro said, “We are decentralized, I encourage everyone to start dialogues and take action.”

 

Twitter user 4lex 4sh4w TR echoed this sentiment, praising the “great community engagement” and noting that 83 percent of people took part. Although around a fourth of validators didn’t cast ballots, this milestone was nonetheless reached. They estimated that 92% of voters (those who did not abstain) favored the Yes position.

 

Binance, a cryptocurrency exchange, promised changes after the initiative passed. When the LUNC tax burn mechanism goes active, deposit and withdrawal costs will alter.

 

Since Binance handles so many LUNC and USTC deposits, the exchange has decided to lower the 1.2% consolidation charge to 0.2% for all such deposits. Please be aware that Binance does not waive the withdrawal fees imposed by other exchanges or platforms for LUNC and USTC deposits. The 0.2% tax burn and Binance’s withdrawal fee will be deducted from the total withdrawal amount users get, the notification states.

 

Almost 30 Years to Waste 10 Billion LUNC

 

Since a slower rate of reduction has been implemented, the LUNC tax burn mechanism is expected to take significantly longer to achieve its ultimate target. It is estimated by LUNC Burner that Terra LUNA Classic will destroy 10 billion LUNC in around 28 years and 9 months at a LUNC tax burn rate of 0.2%.

According to the statistics displayed on the site, a total of about 22,428,000,000 LUNC, or about 0.325756% of the total supply, have been burned as of the time of writing. We deduct the amount of LUNC that has been burned from the on-chain supply to get the overall supply. According to CoinGecko, its current value is 6,907,072,876,045.

 

Read More:

Waves Price Prediction 2023, 2025, 2030: Is Waves a Good Investment?

Filecoin Price Prediction 2023, 2025, 2030: Is Filecoin a Good Investment?

Optimism(OP) Price Prediction 2023,2025,2030 — Is OP a Good Investment?

EOS (EOS) Price Prediction 2023, 2025, 2030 – Is EOS a Good Investment?

Enjin (ENJ) Price Prediction 2023, 2025, 2030 – Is ENJ a Good Investment?

Sandbox Price Prediction 2023, 2025, 2030: Can Sandbox Reach $100?

Immutable X (IMX) Price Prediction 2023, 2024, 2025— Is IMX a Good Investment?

Axie Infinity (AXS) Price Prediction 2023, 2025, 2030 — Is AXS a Good Investment?

Mask Network (MASK) Price Prediction 2023, 2025, 2030 – Is MASK a Good Investment?

Ethereum Name Service (ENS) Price Prediction 2023,2025, 2030 —Is ENS a Good Buy ?

1inch Price Prediction 2023, 2025, 2030

Curve Dao (CRV) Price Prediction 2023, 2025, 2030 —Is CRV a Good Buy?

dYdX (DYDX) Price Prediction 2023, 2025, 2030

PancakeSwap Price Prediction 2023, 2025, 2030: Is CAKE Coin a Good Investment?

Uniswap (UNI) Price Prediction 2023, 2025, 2030 — Is UNI A Good Investment?

Celo (CELO) Price Prediction 2023,2025,2030 — Is CELO a Good Investment?

Near Protocol (NEAR) Price Prediction 2023, 2024, 2025 — Will NEAR Hit $100?

Qtum (QTUM) Price Prediction 2023,2025,2030 — Is QTUM a Good Investment?

Polkadot (DOT) Price Prediction 2025 – 2030: Is Polkadot a Good Investment?

Cosmos (ATOM) Price Prediction 2023, 2025, 2030 — Is ATOM a Good Investment?

Binance Coin (BNB) Price Prediction 2023, 2025, 2030 – Is BNB a Good Investment?

VeChain (VET) Price Prediction 2023, 2025, 2030

Bitcoin SV Price Prediction 2023, 2025, 2030: Is Bitcoin SV a Good Investment?

Dock Price Prediction 2023, 2025, 2030

Axie Infinity (AXS) Price Prediction 2023, 2025, 2030 — Is AXS a Good Investment?

Tezos Price Prediction 2023, 2025, 2030: Is XTZ a Good Investment?

Celsius (CEL) Price Prediction 2023, 2025, 2030

Celer Network (CELR) Price Prediction 2023, 2025, 2030

Cocos-BCX (COCOS) Price Prediction 2023, 2025, 2030 — Will COCOS Hit $10?

Compound (COMP) Price Prediction 2023, 2025, 2030

Shentu (CTK) Price Prediction 2023, 2025, 2030

Cartesi (CTSI) Price Prediction 2023, 2025, 2030

Civic (CVC) Price Prediction 2023, 2025, 2030

DODO (DODO) Price Prediction 2023, 2025, 2030 — Is DODO a Good Investment?

Open Campus (EDU) Price Prediction 2023, 2025, 2030

Fetch.ai (FET) Price Prediction 2023, 2025, 2030 – Is FET a Good Investment?

Frax Share (FXS) Price Prediction 2023, 2025, 2030 — Will FXS Hit $100?

Game Fantasy Token (GFT) Price Prediction 2023,2025,2030 — Is GFT a Good Investment?

GMX Price Prediction 2023, 2025, 2030

Hedera (HBAR) Price Prediction 2023, 2025, 2030 – Is HBAR a Good Investment?

Highstreet (HIGH) Price Prediction 2023, 2025, 2030

ICON (ICX) Price Prediction 2023, 2025, 2030

SPACE ID (ID) Price Prediction 2023, 2025, 2030 — Will ID Hit $10?

JasmyCoin (JASMY) Price Prediction 2023, 2025, 2030: Is JASMY a Good Investment?

JOE (JOE) Price Prediction 2023, 2025, 2030

Kusama (KSM) Price Prediction 2023, 2025, 2030

Lido DAO (LDO) Price Prediction 2023, 2025, 2030

Linear Finance (LINA) Price Prediction 2023, 2025, 2030

Liquity (LQTY) Price Prediction 2023, 2025, 2030

Loopring (LRC) Price Prediction 2023, 2025, 2030

Maker (MKR) Price Prediction 2023, 2025, 2030

Ocean Protocol Price Prediction 2023, 2025, 2030: Is OCEAN Protocol Coin a Good Investment?

Radiant Capital (RDNT) Price Prediction 2023, 2025, 2030

iExec (RLC) Price Prediction 2023, 2025, 2030

Rocket Pool (RPL) Price Prediction 2023, 2025, 2030

Reserve Rights (RSR) Price Prediction 2023, 2025, 2030

SSV Network (SSV) Price Prediction 2023, 2025, 2030

StarLink Coin Price Prediction: Is STARL a Good Investment?

Stargate Finance Price Prediction 2023, 2025, 2030 — Is STG a Good Investment?

StormX (STMX) Price Prediction 2023, 2025, 2030 — Will STMX Hit $1?

Stacks (STX) Price Prediction 2023, 2025 and 2030

Swipe (SXP) Price Prediction 2023, 2025, 2030 – Will SXP Hit $100?

TomoChain (TOMO) Price Prediction 2023, 2025, 2030

Tellor (TRB) Price Prediction 2023, 2025, 2030

UMA (UMA) Price Prediction 2023, 2025, 2030

TerraClassicUSD (USTC) Price Prediction 2023,2025, 2030 — Is USTC a Good Investment?

VeChain (VET) Price Prediction 2023, 2025, 2030

WOO Network (WOO) Price Prediction 2023, 2025, 2030

Yield Guild Games (YGG) Price Prediction 2023, 2025, 2030

0x Protocol (ZRX) Price Prediction 2023, 2025, 2030

Pepe 2.0 Price Prediction 2023, 2025, 2030

Bancor Network Token (BNT) Price Prediction 2023, 2025, 2030 — Is BNT a Good Investment?

JUST (JST) Price Prediction 2023, 2025, 2030 — Is JST a Good Investment?

Smooth Love Potion(SLP) Price Prediction 2023, 2025, 2030

Step App (FITFI) Price Prediction 2023, 2025, 2030 – Is FITFI a Good Investment?

Chia Network (XCH) Price Prediction 2023, 2025, 2030 — Is XCH a Good Investment?

Badger DAO (BADGER) Price Prediction 2023, 2025, 2030 — Is BADGER a Good Investment?

Perpetual Protocol(PERP) Price Prediction 2023, 2025, 2030 — Is PERP a Good Investment?

Cronos (CRO) Price Prediction 2023, 2025, 2030 — Will CRO Hit $1?

Biconomy (BICO) Price Prediction 2023, 2025, 2030 — Will BICO Hit $100?

Dora Factory (DORA) Price Prediction 2023,2025,2030 — Is DORA a Good Investment?

Gods Unchained (GODS) Price Prediction 2023, 2025, 2030 — Is GODS a Good Investment?

Sweat Economy (SWEAT) Price Prediction 2023, 2025, 2030 — Will SWEAT Hit $1?

Flare Token Price Prediction 2023, 2025, 2030 — Is FLR a Good Investment?

Moonbeam (GLMR) Price Prediction 2023, 2025, 2030 – Is GLMR a Good Investment?

Kadena (KDA) Price Prediction 2023,2025,2030 — Is KDA a Good Investment?

Creditcoin (CTC) Price Prediction 2023,2025,2030 — Is CTC a Good Investment?

Illuvium (ILV) Price Prediction 2023, 2025, 2030 — Is ILV a Good Investment?

Akropolis (AKRO) Price Prediction 2023,2025,3030 — Is AKRO a Good Investment?

Trust Wallet Token (TWT) Price Prediction 2023, 2025, 2030

Alien Worlds (TLM) Price Prediction 2023, 2025, 2030

Worldcoin (WLD) Price Prediction 2023, 2025, 2030

Casper (CSPR) Price Prediction 2023, 2025, 2030 — Is CSPR a Good Investment?

Api3 (API3) Price Prediction 2023,2025,2030 — Is API3 a Good Investment?

Optimism (OP) Price Prediction 2023, 2025, 2030 — Is OP a Good Investment?

Register now to begin your crypto journey

Download the BTCC app via App Store or Google Play

Follow us

Scan to download

Comments

View more

Leave a comment

Your email address will not be published. Required fields are marked with an asterisk (*).

Comment*

Name*

Email address*

Submit