LUNC burn tax set to increase to 0.5% once KuCoin’s proposal is approved

After receiving the necessary votes, a major resolution has just been passed in the KuCoin network, The purpose of the proposal is to reduce the Terra Classic LUNC to 0.5%.

Following the positive results, KuCoin announced an increase in the LUNC network burn rate from 0.2% to the proposed 0.5%.

LUNC Network Burns Tax Spikes on KuCoin

KuCoin took Twitter To announce an increase in the burn tax. In its announcement, KuCoin said that it will facilitate the scaling of TerraClassic LUNC and TerraClassicUSD (USTC) on its platform following burn tax activation.

Specifically, the activation will take place at the designated Terra Classic block height of 12,902,399 and will take effect on May 23rd.

Once activated, KuCoin will pay users more for transactions involving two crypto assets, LUNC and USTC. In addition to increased payments, the burn rate tax would reduce the LUNC supply.

But the burn rate tax still has drawbacks as it will reduce trading volumes. This is the reason why many exchanges have rejected such offers in the past.

Notably, KuCoin has always supported this kind of growth even when other exchanges were delayed. For example, Exchange previously supported a September 2022 Terra Classic burns a 1.2% tax even before the proposal passes.

Other exchanges, including Crypto.com, MEXC, and Binance, later announced support for the Burn Tax.

But after passing contained data That increase drove trading volume for LUNC. Due to the increase in fees, many investors stopped trading with the property.

Following the result, the LUNC community voted to reduce the burn tax to 0.2%, attract support Crypto exchanges such as Binance.

Following the cut, the Terra Classico community introduced another proposal to increase the burn tax rate, but it is not implemented,

Latest burn tax hike proposal, 3 others get overwhelming support

While other proposals to reduce the burn tax from 1.2% to 0.2% failed due to many debates and arguments, the latest one found massive support.

One of the reasons Proposition 11515 passed was the conservative increase, which would not increase fees and discourage investors.

The proposal primarily focuses on reducing the excess supply of LUNC tokens in the market in order to prevent oversaturation and its associated risks.

But, this is not the only proposal presented to the LUNC community. an active member raised 3 other proposals, as well as an increase in the burn tax to enhance economic policies on the network.

Three others aim to increase staking rewards, whitelist smart contracts to increase on-chain utility and volume, and raise community pool funding to increase developer funding.

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