LUNC News: OrbitLabs has proposed a thorough review of the new “Reverse Charge” tax system on Terra Classic. This tax mechanism aims to simplify tax handling on the blockchain by deducting taxes from the recipient rather than the sender.
The community’s approval would allow OrbitLabs to proceed with the review, ensuring the system’s reliability and security before full implementation.
LUNC News: OrbitLabs Proposes Testing Terra Classic’s Tax Mechanism
According to a post on X (formerly Twitter), OrbitLabs announced its intention to review the newly proposed “Reverse Charge” tax mechanism for Terra Classic.
The new system, proposed by developers StrathCole and HCC, is going to eliminate the need for tax management on the blockchain by automatically charging tax from the recipient of the transaction. This approach is different from the current system where the sender has to include extra tax charges in the transactions.
OrbitLabs has pointed out that the community must approve the process in 6 days before the review can proceed. The group is applying for pay per job (PPJ) with the remuneration being $2,500 USD, which will be payable in LUNC once the job is done.
This review would include code audit, feature validation and validation of whether the new mechanism is consistent with the goals of Terra Classic in regards to simplified tax management.
Potential Benefits of the Reverse Charge Mechanism
The Reverse Charge mechanism proposed here aims to minimize the tax procedures and might be less complicated than the previous models such as Tax2Gas. This way, the new method could remove the need for senders to calculate and attach extra fees to the transaction, thus improving the user’s experience.
As per OrbitLabs, this mechanism also plans to maintain compatibility with the previous systems to minimize disruption to dApps and other third-party services that operate on Terra Classic.
Hey #LUNCcommunity,
the reverse charge approach for #burntax is live on rebel-2 testnet now.
This is a call to all dApps and developers to deploy / test their contracts on rebel-2 to test and verify that the approach is backwards-compatible and does not break existing apps…
— StrathCole (@ColeStrathclyde) November 7, 2024
Some initial testing done on Terra Classic’s rebel-2 testnet suggests that the Reverse Charge system might be efficient and even backward compatible. StrathCole, one of the developers, presented test results which proved that tax deductions were possible without affecting the work of other dApps.
For example, in one test, a user sent 1,000,000 LUNC through a wallet extension, and the recipient received 995,000 LUNC after tax, with no additional fees required from the sender.
Proposed Work and Timeline for OrbitLabs’ Review
OrbitLabs has outlined a two-week timeline for the proposed review if granted approval. In the first week, the team plans to conduct a comprehensive review of the Reverse Charge code to verify security and functionality. The second week would involve fixing and updating tests to ensure that the mechanism functions correctly across different scenarios and is compatible with Terra Classic’s latest SDK version, 0.47.
OrbitLabs has previously collaborated with Terra Classic’s development community, including assisting with earlier tax-related implementations.
In this case, the organization has committed to working closely with Terra Classic developers and community members to resolve any issues that arise during testing. OrbitLabs has also completed KYC verification through sollidproof.io, fulfilling the requirements set by Proposal #12129 for code review contributors.
Amid these LUNC news, Terra Luna Classic price has been in a bullish momentum with the price trading at $0.00009364, a 1.97% surge from the 24 hour low. Backing the bull rally, analysis from CoinGape suggets that the LUNC price may be on the verge of a 207% rally accompanying the Reverse Charge” tax mechanism approval.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
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Source: https://coingape.com/lunc-news-orbitlabs-proposes-testing-for-new-terra-classics-tax-mechanism/
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