The Terra Classic [LUNC] community has been muddled in a debate since a member proposed to have the 1.2% tax burn reduced. Akujiro, a LUNC community member, had initially asked that LUNC reduced that tax burn to 0.2%.
Besides the reduction, he proposed that LUNC should add 10% of the tax profits to the community pool. Recall that some crypto exchanges, including Binance, had confirmed their support for the burn.
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However, the bone of contention changed when Edward Kim, a prominent community member, publicly shared his thoughts on the debacle at hand.
My thoughts on Terra Classic Proposal 5234 https://t.co/gYpPEejNHJ
— Edward Kim (@edk208) October 14, 2022
Back, forth but here’s where I stand
Sharing via his Twitter page, Kim noted that he had carefully analyzed the pros and cons of staying put with the current tax burn. He also noted that he had considered the proposed option.
According to him, decreasing the tax could lead to an uptick in LUNC’s on-chain volume. Additionally, it could help attract new delegations via the help of validators. In his Medium post, Kim said,
“Uptick in volume will be confounded with the unlocking of new utility on the chain and thus may not be accurately measurable with the timing of this proposal.”
The blockchain expert noted that those in favor of the reduction might be doing so because of their bias. On the other hand, Kim stated that the maintenance of the 1.2% tax was also because some community members felt it was too early to change the project course.
He also mentioned that some members felt the community did not have enough data for such a step. To cap it all, Kim concluded that he was in support of the reduction. He also urged other LUNC community members to take their stand.
Where does this leave LUNC?
In light of the development, it did not seem like LUNC was getting the attention it might have wanted. According to Santiment, the LUNC social volume had reduced drastically, with its value at 50 as of 15 October.
As for its price, it did not seem like there was respite in sight. The crypto on-chain tool showed that LUNC had lost 2.76% of its value and traded at $0.000271 as of 15 October. However, the press time press did witness another 1.8% drop and stood at $0.000268.
Source: Santiment
For the LUNC trading volume, there was no stopping its decline. As of 15 October, the volume was $287.59 million, shredding off 35% from 14 October.
Source: Santiment
In conclusion, the LUNC community seemed divided about the proposal. Comments from Kim’s Twitter post showed that while some considered the reduction ridiculous, others felt 0.2% was too small and should be increased.
Giving 10% of the tax to yourself is an even worse idea than the burn tax. Devs absolutely deserve to be paid – either through donations or via formal community pool spend proposals – but automatically redirecting 10% of every burn to "contributors" is authoritarian & wrong.
— FatMan (@FatManTerra) October 14, 2022
With 1.2% tax, unfortunately the volume drops a lot. I think the tax should be reduced, but instead of 0.2%, I think it would be more reasonable to choose 0.6%. Or at least 0.4%. Especially after 1.2%, 0.4% would be adopted very quickly.
— Addicted to LUNA Classic ?? ?? (@addictedlunaa) October 14, 2022
