- Terra Luna Classic community votes on revised LUNC burn tax distribution proposal by developer Frag.
- Proposal aims to implement the burn tax changes and enhance LUNC staking rewards.
- LUNC price falls 5% amid market-wide selloff trading volume and open interests rise.
The Terra Luna Classic (LUNC) community is voting on a proposal to revise the distribution of its burn tax. This pay-per-job (PPJ) proposal , submitted by developer Frag from Genuine Labs, requires community and validator approval to implement changes outlined in proposal 12098, which passed in April.
The proposal seeks to implement a revised burn tax distribution as suggested by the community. Currently, the 0.5% burn tax allocates 80% for burning and splits the remaining 20% between the community pool and validator rewards. The new proposal would change this to 10% each for the Community pool and Oracle pool, effectively redirecting the burn tax portion to long-term staking rewards.
Frag’s implementation plan outlines the technical changes required. This includes updating the ante handler with the new distribution logic, adjusting parameters, modifying proposal types and handlers, and writing unit tests. Additionally, a non-empty upgrade proposal handler will facilitate rollout with a coordinated chain halt. Frag estimates completion within 56 hours at a cost of $3600 in LUNC. The task involves development, local testing, unit tests, testnet rollout and coordination, and mainnet rollout and coordination, with high odds of completion by mid-July.
The proposed change would benefit validators by increasing long-term staking rewards but slightly decrease the APR (around 0.5%) for users. The proposal currently enjoys overwhelming support (99.97%) from validators, including Interstellar Lounge, JESUSisLORD, and StakeBin. However, some top validators haven’t voted yet.
As of press time, LUNC’s price reflected broader market weakness, dropping 5% in the last 24 hours to $0.0001024. Despite the price decline, trading volume has increased, with both LUNC and 1000LUNC futures open interest rising. Meanwhile, USTC’s price also fell over 4% to $0.02059, marking a 12% decline over the week.
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