The 1.2% Tax Burn Mechanism of Terra Classic (LUNC)

  • The Terra community introduced a 1.2% tax burn for all on-chain transactions of LUNC on its network.

Tax Burn Mechanism on Terra Classic Network

On the Terra Classic Network, the Tax Burn mechanism reduce the total supply and when the total supply of LUNC reached at 10 billion, the mechanism will become disable and the total supply will remain fixed at 10 billion.

On September 21, 2022, the 1.2% tax burn went live at the block height of 9,475,200. The two TextProposals 3568 and 4159 were expected to impose a 1.2% tax burn for on-chain transactions of LUNC and USTC, that previously passed by the Terra community. LUNC implement the tax of 1.2% for every on-chain transactions.

At present the total supply of LUNC is at 6.9 trillion and the assets require to be cut by 99.82% to reach the expected objective.

Additionally, Binance, the leading crypto exchange, stated that it will adjust the withdrawal fees for LUNC and USTC and the users will not be charged this fee until withdrawals are made.

However, the tax burn news of LUNC did not really affect its price. At present it is trading at a price of $0.000276 USD with 2.77% down in the last 24 hours. It currently ranks at the 35th largest cryptocurrency with a market capitalization of 1.7 billion, as per the CoinMarketCap.

Source: CoinMarketCap

The above chart shows the price analysis of LUNC in the recent seven days. The token marked its one-week low at the trading price of $0.000266 on September 16, 2022 and then on the same day marked its one-week high at the trading price of $0.0003223.

Source: https://www.thecoinrepublic.com/2022/09/23/the-1-2-tax-burn-mechanism-of-terra-classic-lunc/