Crypto.com Announces Support For LUNC 1.2% Tax Burn

• As a means of decreasing supply, the LUNC plans to use the Tax Burn strategy.
• The approved plan will take effect at the block height of 9,475,200.

Perhaps the worst cryptocurrency crash ever occurred in May 2022, when the Terra-collapse LUNC occurred. Along with LUNC, Terra’s another native token, USTC, the algorithmic stablecoin, almost reached zero in value in a single week.

Before the disaster, this venture was among the more successful ones, with an all-time high of $119.18 in April. This meteoric ascent, however, set the stage for a spectacular fall. Investors and consumers alike panicked as the death spiral continued.

1.2% Tax Burn Strategy

The Terra community recently voted in favor of a proposal that would add a 1.2% tax burn to all on-chain transactions in an effort to revitalize LUNC.

As a means of decreasing supply, the LUNC plans to use the Tax Burn strategy. One can count on this strategy to hold up until there are ten billion LUNC in circulation. At that point, the system will shut down, and the total supply will remain at 10 billion.

On September 20, 2022, or at the block height of 9,475,200 in Terra Classic, the approved plan will take effect. However, due to the shifting block periods, the proposed launch time may be delayed or advanced. Upon the completion of the tax burn, Crypto.com will no longer be able to process deposits or withdrawals.

Crypto.com is temporarily blocking deposits and withdrawals until the network upgrade is complete to guarantee the smooth rollout of the tax burn. Once the Exchange determines that the network is stable after the update, it will reopen deposits and withdrawals.

Trading at an 11% weekly loss, LUNC’s price was in the red. As market sentiment becomes gloomy, cryptocurrencies such as Bitcoin and Ethereum are selling at lows around $20,000 and $1,400, respectively, demonstrating the bears’ power in this current LUNC drop.

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